Chapter 7 interest rates and bond valuation

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Chapter 7 interest rates and bond valuation

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Mục lục

  • Slide 1

  • Key Concepts and Skills

  • Chapter Outline

  • Bond Definitions

  • Present Value of Cash Flows as Rates Change

  • Valuing a Discount Bond with Annual Coupons

  • Valuing a Premium Bond with Annual Coupons

  • Graphical Relationship Between Price and Yield-to-maturity (YTM)

  • Bond Prices: Relationship Between Coupon and Yield

  • The Bond Pricing Equation

  • Example 7.1

  • Interest Rate Risk

  • Figure 7.2

  • Computing Yield to Maturity

  • YTM with Annual Coupons

  • YTM with Semiannual Coupons

  • Table 7.1

  • Current Yield vs. Yield to Maturity

  • Bond Pricing Theorems

  • Bond Prices with a Spreadsheet

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