青岛农业大学经济与管理学院财务管理英文课件 chapter9.pptVIP

Bonds and Their Valuation Key features of bonds Bond valuation Measuring yield Assessing risk Key Features of a Bond Financial Asset Values The discount rate (ki) is the opportunity cost of capital, i.e., the rate that could be earned on alternative investments of equal risk. What’s the value of a 10-year, 10% coupon bond if kd = 10%? The bond was issued 20 years ago and now has 10 years to maturity. What would happen to its value over time if the required rate of return remained at 10%, or at 13%, or at 7%? At maturity, the value of any bond must equal its par value. The value of a premium