tai文档新wan财务管理_lecture4(ch4).pptVIP

Topics Covered Bond Characteristics reading the financial pages Bond Prices and Yields Bond prices and interest rates YTM vs. current yield Rate of Return Interest Rate Risk The Yield Curve Nominal and Real Rates of Interest Default Risk Bonds Terminology Bond - Security that obligates the issuer to make specified payments to the bondholder. Coupon - The interest payments made to the bondholder. Face Value (Par Value or Maturity Value) - Payment at the maturity of the bond. Coupon Rate - Annual interest payment, as a percentage of face value. Bonds WARNING The coupon rate IS NOT the discount