- 1、本文档共22页,可阅读全部内容。
- 2、原创力文档(book118)网站文档一经付费(服务费),不意味着购买了该文档的版权,仅供个人/单位学习、研究之用,不得用于商业用途,未经授权,严禁复制、发行、汇编、翻译或者网络传播等,侵权必究。
- 3、本站所有内容均由合作方或网友上传,本站不对文档的完整性、权威性及其观点立场正确性做任何保证或承诺!文档内容仅供研究参考,付费前请自行鉴别。如您付费,意味着您自己接受本站规则且自行承担风险,本站不退款、不进行额外附加服务;查看《如何避免下载的几个坑》。如果您已付费下载过本站文档,您可以点击 这里二次下载。
- 4、如文档侵犯商业秘密、侵犯著作权、侵犯人身权等,请点击“版权申诉”(推荐),也可以打举报电话:400-050-0827(电话支持时间:9:00-18:30)。
查看更多
15 Asset Valuation Debt Investments Analysis and Valuation文档
十五 Asset Valuation: Debt Investments: Analysis and Valuation
1.A: Introduction to the Valuation of Fixed Income Securities
a: Describe the fundamental principles of bond valuation.
Bond investors are basically entitled to two distinct types of cash flows: 1) the periodic receipt of coupon income over the life of the bond, and 2) the recovery of principal (par value) at the end of the bonds life. Thus, in valuing a bond, youre dealing with an annuity of coupon payments, plus a large single cash flow, as represented by the recovery of principal at maturity, or when the bond is retired. These cash flows, along with the required rate of return on the investment, are then used in a present value based bond model to find the dollar price of a bond.
b: Explain the three steps in the valuation process.
The value of any financial asset can be determined as the sum of the asset’s discounted cash flows. There are three steps:
Estimate the cash flows.
Determine the appropriate discount rate.
Calculate the sum of present values of the estimated cash flows.
c: Explain what is meant by a bonds cash flow.
This LOS is very straightforward. A bonds cash flow is the coupon or principal value. For an option-free bond (meaning that the bond is not callable, putable, convertible, etc.), the expected cash flow structure is shown on the time line below.
Where m = maturity, par, or face value (usually $1,000, £1,000, et cetera), CPN = (maturity value * stated coupon rate)/# coupons per year, and N= # of years to maturity * # coupons per year. So, for an arbitrary discount rate i, the bond’s value is:
Bond value= CPN1 + CPN2 + ... + CPNn*m + M (l + i/m)1 (1 + i/m)2 (l + i/m)n*m Where: i = interest rate per annum (yield to maturity or YTM), m = number of coupons per year, and n = number of years to maturity.
d: Discuss the diffulties of estimating the expected cash flows for some types of bonds and identify the bonds for which estimating the expected cash flows is difficult.
您可能关注的文档
- [笔记]中国化妆品相关法律法规和标准.doc
- [指南]25t吊机桁架12吨吊装专项施工计划.doc
- [汇编]25t吊机桁架12吨吊装专项施工计划.doc
- [定稿]铁路施工作业指导书参考文本.doc
- [汇编]小学科学说课稿3612323.doc
- [精]中国会计行业服务贸易发展报告.doc
- [重点]09-10年度电磁场与电磁波48学时考试复习.doc
- [分享]电火花机维护保养细则.doc
- [整理版]成人高考(专升本)政治必重视点题目.doc
- [整理]电火花机维护保养细则.doc
- 原电池电动势的测定实验报告.pdf
- 与业主、设计、总包、监理和他承包人的配合措施.pdf
- 公司管理流程.pptx
- 2024_2025学年新教材高中地理第1章地球的运动素养综合训练新人教版选择性必修1.doc
- 2024_2025学年新教材高中地理第3章大气的运动第1节常见天气系统第1课时锋与天气分层作业新人教版选择性必修1.doc
- 2024_2025学年新教材高中地理第1章地球的运动第2节地球运动的地理意义第4课时正午太阳高度的变化四季更替和五带划分分层作业课件新人教版选择性必修1.pptx
- 2024_2025学年新教材高中地理第2章地表形态的塑造第2节构造地貌的形成第1课时地质构造与地貌课件新人教版选择性必修1.pptx
- 2024_2025学年新教材高中地理第1章地球的运动问题研究人类是否需要人造月亮课件新人教版选择性必修1.pptx
- 五片小雪花课件.pdf
- 2024_2025学年新教材高中地理第3章大气的运动第2节气压带和风带第1课时气压带和风带的形成分层作业课件新人教版选择性必修1.pptx
最近下载
- Beautiful Ireland and Its Traditions优秀教学课件.pptx
- 2023年第二届新晨杯_B题.pdf VIP
- 光储柴一体化供电系统应用调研及系统方案.ppt
- 毕业设计(论文)某机械加工车间低压配电系统及车间变电所设计.doc
- 火锅店安全管理制度解析.docx
- 机械制图习题集(多学时)第4版课后习题答案.pdf VIP
- 《祝福》《林教头风雪山神庙》《装在套子里的人》联读课件 统编版高中语文必修下册.pptx
- 2020-2021学年广东省广州市天河区七年级(下)期末语文试卷.doc VIP
- 彩钢板屋面除锈及防水工程施工方案.doc VIP
- 肺隐球菌病病人的护理.pptx
文档评论(0)