CF2 Ch 06 Bonds and Their Valuation 公司财务与金融 课件.pptVIP

Chapter 6 Bonds and Their Valuation Key Topics Key features of bonds Bond valuation Measuring yield Assessing risk Key Features of a Bond Par value: Face amount; paid at maturity. Assume $1,000. Coupon interest rate: Stated interest rate. Multiply by par value to get dollars of interest. Generally fixed. Maturity: Years until bond must be repaid. Declines. Issue date: Date when bond was issued. Default risk: Risk that issuer will not make interest or principal payments. Call Provision Issuer can refund if rates decline. That helps the issuer but hurts the investor. Therefore, borr