Chap014 Bond Prices and Yields 博迪投资学教材.pptVIP

CHAPTER 14;Face or par value Coupon rate Zero coupon bond Compounding and payments Accrued Interest Indenture;Different Issuers of Bonds;Figure 14.1 Listing of Treasury Issues;Figure 14.2 Listing of Corporate Bonds;Table 14.1 Principal and Interest Payments for a Treasury Inflation Protected Security;PB = Price of the bond Ct = interest or coupon payments T = number of periods to maturity y = semi-annual discount rate or the semi-annual yield to maturity;Ct = 40 (SA) P = 1000 T = 20 periods r = 3% (SA) ;Prices and Yields (required rates of return) have an inverse relationship When yields get very high the value of the bond will be very low When yields approach zero, the value of the bond approaches the sum of the cash flows;Figure 14.3 The Inverse Relationship Between Bond Prices and Yields;Table 14.2 Bond Prices at Different Interest Rates (8% Coupon Bond, Coupons Paid Semiannually);Yield to Maturity;Yield to Maturity Example;Yield Measures;Figure 14.4 Bond Prices: Callable and Straight Debt;Example 14.4 Yield to Call;Realized Yield versus YTM;Figure 14.5 Growth of Invested Funds;Figure 14.6 Prices over Time of 30-Year Maturity, 6.5% Coupon Bonds;Holding-Period Return: Single Period;Holding-Period Return Example;Figure 14.7 The Price of a 30-Year Zero-Coupon Bond over Time at a Yield to Maturity of 10%;Rating companies Moody’s Investor Service Standard Poor’s Fitch Rating Categories Investment grade Speculative grade/Junk Bonds;Figure 14.8 Definitions of Each Bond Rating Class;Coverage ratios Leverage ratios Liquidity ratios Profitability ratios Cash flow to debt;Table 14.3 Financial Ratios and Default Risk by Rating Class, Long-Term Debt;Figure 14.9 Discriminant Analysis;Sinking funds Subordination of future debt Dividend restrictions Collateral;Figure 14.10 Callable Bond Issued by Mobil;Default Risk and Yield;Figure 14.11 Yields on Long-Term Bonds, 1954 – 2006;Credit Risk and Collateralized Debt Obligations (CDOs);Figure 14.12 Collateralized Debt Obligati