Chapter 7 interest rates and bond valuation

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Chapter 7 interest rates and bond valuation

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. structure of interest rates and the determinants of bond yields 7- 2 Chapter Outline • Bonds and Bond Valuation • More about Bond Features • Bond Ratings • Some Different Types of Bonds • Bond Markets • Inflation. 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. Chapter 7 Interest Rates and Bond Valuation McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Key Concepts and Skills • Know the important bond

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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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