IntroductiontotheValuationofDebtSecurities幻灯片.pptVIP

* * * * * * * * * * * * * * * * * Coupon Bond Example Take a 3-year 10% coupon bond with face value = 1000, assuming annual coupon payments: Spot rates: r1=10%, r2=12%, r3=14% Yield-to-Maturity (IRR of cash flows) Zero Coupon Bond Example Price of 3-year zero coupon bond with face value = 1000 Spot rates: r1=10%, r2=12%, r3=14% Yield-to-Maturity Bond Valuation Using Treasury Spot Rates Exhibit 5 takes a 10-year, 8% semi-annual coupon bond and creates 20 zero-coupon bonds with different maturities. If given the spot rate (annual discount rate) for each maturity, it is possible t