0 Lecture 3a Bond Pricing英文学习资料 .pdfVIP

Lecture 3 Bonds: Interest Rate,, Risk,, and Valuation 5- 2 Toppics Covered BondBond CharacteristicsCharacteristics reading the financial pages Bond Pricing and Interest Rates YieldYield toto MaturityMaturity Interest Rate Risk Corporate Bonds and the Risk of Default RateRate ofof ReturnsReturns vsvs. YTMYTM 5- 3 Bonds TerminologyTerminology Bond - Security that obligates the issuer to make specified papaymentsments toto thethe bondholderbondholder. - Bond Certificate: indication of the amount and dates of all payments to bbe madde. Maturity Date: the final payment date of the bond. Term of the Bond: the time remaining until the repayment date. Coupon - The promised interest payments made to the bondholder. 5- 4 Bonds Terminology FaceFace ValueValue (Par(Par ValueValue oror PrincipalPrincipal Value)Value) - PaymentPayment at the maturity of the bond and the notional amount we use to compute the interest payment. CouponCoupon RateRate - AnnualAnnual interestinterest paymentpayment, asas aa percentage of face value. It is set by the issuer and stated on the bond certificate. Types of Bonds: Secured and Unsecured 1) Secured bonds have specific assets of the issuer pledged as collateral for the bonds. A mortgage bond is secured by real estate. Registered 2) Unsecured bonds are issued against the general credit of the borrower; they are also called debenture bonds. No ASSET 公司債公司債 as Collateral