... paymentsFirst, divide the annual coupon by twoSecond, divide the annual discount rate by twoThird, double the number of yearsnkCkCkCPV221)2/1(Par2/ )2/1(2/)2/1(2/bond of ++++++= ... par value, a 9 percent coupon rate, and a 10 percent yield to maturity. What is the duration of this bond? years92.1)10.1(090,1$)10.1(90$)10.1()2(090,1$)10.1(90$)1()1()(DUR212111=++=++=∑∑==ntttntttkCktC...
... năng thứ 2 của tài sản tài chính. III. THỊTRƯỜNGTÀI CHÍNH: 1. Khái niệm về thịtrường Thị trườngtàichính thể hiện rất nhạy cảm mọi hoạt động của cácthịtrường hàng hoá và dịch vụ. Nó ... nơi thi u, chủ yếu diễn ra trên thịtrườngtài chính. Thuật ngữ thịtrườngtàichính được sử dụng để phân biệt thịtrường mua bán, giao dịch các loại chứng khoán (tài sản tài chính) với các ... phủ, các tổ chức tàichính hay các doanh nghiệp. Người sở hữu tài sản tàichính có thể là tổ chức hay là cá nhân. 91 Chương V THỊ TRƯỜNGTÀICHÍNHVÀCÁCĐỊNH CHẾ TÀI CHÍNH TRUNG GIAN...
... managers believe their stock is undervalued in the market, they may take actions to capitalize on this discrepancyStock repurchasesUse excess cash to purchase shares in the market at a low ... firm from auditing a client whose CEO, CFO, or other employees are employed by the client firm within one year prior to the audit 28Investor Participation in the Secondary Market (cont’d)How...
... Securities Act of 1933 and the Securities Exchange Act of 1934 were enacted to prevent unfair or unethical trading practices on the security exchangesThe NYSE:States that every transaction...
... yield on newly issued T-bonds is commonly used as a proxy for the risk-free rateThe terms within the parentheses measure the market risk premiumHistorical data over 30 or more years can...
... payments for floating-rate payments that are cappedThe floating-rate payer pays an up-front fee for this featureThe fixed-rate payer may allow the cap if it believes interest rates will not exceed...
... currency for a specified price within a specified period of timeA currency put option provides the right to sell a specified currency for a specified price within a specified period of timeCorporations ... reportingReporting option compensation as an expenseThe FASB has been unwilling to require firms to report this expense on the income statementEarnings will appear higher when a firm uses stock options ... futures contract allows the right to purchase or sell that futures contract for a specified price within a specified period of timeOptions on futures grant the power to take the futures position...
... dateAvailable for various stock indexes (see next slide)Have four settlement dates on the third Friday in March, June, September, and DecemberThe securities underlying the stock index ... date, the T-bill futures contract has a price of 93.50. What is the investor’s nominal profit from this strategy?000,7$000,935$000,942$Profit =−= 30Stock Index Futures (cont’d)Type of Stock ... futures contract specifies 93–14 of the par value as the price. What is the nominal profit from this futures transaction?50.062,3$00.375,90$50.437,93$Profit =−= 27Hedging with Interest Rate...
... (ERISA)100 percent vesting after five years, orGraded vesting, with 20 percent vesting in the third year, 40 percent in the fourth, 60 percent in the fifth, 80 percent in the sixth, and 100 ... performanceCompanies can diversify the age distribution of their customer base to reduce the exposure to this riskIf the customer base is concentrated in the older age group, life insurance companies...
... to the securities firmAnalysts cannot be supervised by the investment banking department within the securities firmAn analyst rating must divulge any recent investment banking business...
... stocks 26Bond Fund Categories (cont’d)High-yield (junk) bond funds consist of at least two-thirds of bonds rated below Baa by Moody’s or BBB by S&PInternational and global bond fundsInternational...
... the institution cannot controlFinance companies need skilled managers to analyze the creditworthiness of borrowers and assess how future economic conditions may affect their ability to repay...