Security Selection Intrinsic Valuation - Welcome to the …安全选择内在价值-欢迎来到….pptVIP

6.* 6.* 6.* 6.* 6.* 6.* 6.* 6.* 6.* 6.* 6.* 6.* 6.* 6.* 6.* 6.* 6.* 6.* 6.* 6.* 6.* 6.* Yield-to-maturity (YTM) = the market required rate of return implied by the current bond price If given all information except YTM, the YTM can only be solved through iterative methods (“trial an error”) The bond valuation eqn cannot be rearranged for ‘r’. YTM’s are easily solved using Excel or financial calculators. 6-* 6-* * High Grade Moody’s Aaa and SP AAA – capacity to pay is extremely strong Moody’s Aa and SP AA – capacity to pay is very strong Medium Grade Moody’s A and SP A – capacity to pay is st