'Higher interest rate risk' diaporamas de présentation

Chapter 12 Bond Selection

1k views • 68 slides

Chapter 5

Chapter 5. Bonds, Bond Valuation, and Interest Rates. Topics in Chapter. Key features of bonds Bond valuation Measuring yield Assessing risk. What is a Bond?. Key Features of a Bond. Par value: Face amount; paid at maturity. Assume $1,000.

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Chapter 13 Bond Selection

Chapter 13 Bond Selection. To preserve their independence, we must not let our rules load us with perpetual debt. We must make our election between economy and liberty, or profusion and servitude. - Thomas Jefferson. Outline. Introduction The meaning of bond diversification

595 views • 39 slides

Bond Valuation

Bond Valuation. Application of present value techniques to bonds and stocks Pricing and Valuation are the core issues in finance. Some standard forms of Bonds. C=coupon, F=face value, T=maturity date Pure Discount or Zero-coupon bonds PV=FV/(1+r) T Level-coupon bonds

838 views • 30 slides

Fixed-income securities

Fixed-income securities. A variety of fixed-income securities, I. Interest-bearing bank deposit: (1) saving account, (2) certificate of deposit (CD, a time deposit), (3) money market account. Commercial paper. Eurodollar deposits and CDs. A variety of fixed-income securities, II. T-bills.

629 views • 29 slides

Chapter Three

Part II Principles of Financial Markets. Chapter Three. UNDERSTANDING INTEREST RATES. Present Value. Four Types of Credit Instruments 1. Simple Loan 2. Fixed Payment Loan 3. Coupon Bond 4. Discount Bond Concept of Present Value Simple loan of $1 at 10% interest

361 views • 25 slides

The Economics of Money, Banking, and Financial Markets Mishkin, 7th ed. Chapter 4

The Economics of Money, Banking, and Financial Markets Mishkin, 7th ed. Chapter 4. Understanding interest rates. Present value. The present value of a given future payment is smaller when: the interest rate is higher, and/or the payment is further in the future. Present value.

1.04k views • 23 slides

Asset Liability Management in Insurance Companies.

10-Dec-12. Asset Liability Management in Insurance Companies. What is ALM?.

1.47k views • 18 slides

Present Value

Present Value. Four Types of Credit Instruments 1. Simple loan (principal & interest repaid at maturity) 2. Fixed-payment loan 3. Coupon bond 4. Discount (zero coupon) bond Concept of Present Value (Cash Flow concept) Simple loan of $1 at 10% interest Year 1 2 3 n

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Measurement of Interest Rate Risk

493 views • 9 slides