股票与到期收益率.pptVIP

How are sinking funds executed? Call x% of the issue at par, for sinking fund purposes. Likely to be used if kd is below the coupon rate and the bond sells at a premium. Buy bonds in the open market. Likely to be used if kd is above the coupon rate and the bond sells at a discount. CHAPTER 4Bonds and Their Valuation Key features of bonds Bond valuation Measuring yield Assessing risk What is a bond? A long-term debt instrument in which a borrower agrees to make payments of principal and interest, on specific dates, to the holders of the bond. Key Features of a Bond Par value – face amount of t