PPT-Stock Valuation 0 8 While we value the bonds assuming ½, 1 years time difference between

Assume a perpetuity that pays an annual coupon C with a required return of R Show a graph that illustrates how the price of the perpetuity changes over time 1 Discrete versus continuous time Debt. 0. Know the important bond features and bond types. Understand bond values and why they fluctuate. Understand bond ratings and what they mean. Understand the impact of inflation on interest rates. Understand the term structure of interest rates and the determinants of bond yields. . of. Market Value. Andreas . Gerwinski. Seminar . Credit. . Risk. Dr. Frank Seifried. TU Kaiserslautern. 17.Januar 2011 . 1. D.Duffie. . and. . K.J.Singleton. , Modeling Term . Structures. . of. Key Features of Bonds. Bond Valuation. Measuring Yield. Assessing Risk. Chapter 7. What is a bond?. A long-term debt instrument in which a borrower (bond issuer) agrees to make payments of principal and interest, on specific dates, to the lender (bondholders). Chapter 11. Learning Objectives. Understand interest rate risk and the key bond pricing relation. Compute and understand the valuation implications of:. Duration . Modified Duration, and . Convexity of a bond portfolio. (chapter 7). Bond markets. Bond. : . A long-term debt instrument in which a borrower agrees to make payments of principal and interest, on specific dates, to the holders of the bond. Primarily traded in the over-the-counter (OTC) market.. Campbell R. Harvey. Fuqua School of Business. Duke University. charvey@mail.duke.edu. http://www.duke.edu/~charvey. Definition of a Bond. A . bond . is a security that obligates the issuer to make specified interest and principal payments to the holder on specified dates.. Instructor: Ryan Williams. Learning Objectives. Value a bond given its coupon rate, par value, yield-to-maturity, time to maturity and payment frequency.. Given all but one of the factors of a bond’s value, find the remaining factor.. 434-395-2046. Longwood University. 201 High Street. Farmville, VA 23901. Used to raise capital instead of giving up ownership. Generally . lower return, but also lower . risk. Source of steady income. Instructor: Ryan Williams. Learning Objectives. Value a bond given its coupon rate, par value, yield-to-maturity, time to maturity and payment frequency.. Given all but one of the factors of a bond’s value, find the remaining factor.. SECURITY VALUATION -BONDS. Lesson objectives. Importance of Securities. Video presentation summarising the topic. Types of Securities. Types of Bonds. Features of bonds. Valuation of redeemable and irredeemable Bonds. When a corporation or government wishes to borrow money from public, it usually does so by issuing, or selling bonds. When investors buy a bond, they lend money to the bond issuer, the government or corporation. David Lee. FinPricing. https://finpricing.. com/lib/IrOIS.html. Inflation Bond. Summary. Inflation Indexed Bond Introduction. The use of Inflation Indexed Bonds. Valuation. Practical Guide. A Real World Example. Stephen Gray. Fuqua School of Business. Office: 310 West. Tel: 660-7786. E-mail: sg12@mail.duke.edu. Web: <www.duke.edu/~sg12>. The Three Ideas in Finance. The Time Value of Money. Diversification and Risk. 6. Lycan. , Inc. has 8.2% coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments and have a par value of $1,000. If the YTM on these bonds is 10.2%, what is the current bond price?.