货币金融学(全英)Charpter4 课件.ppt

Copyright ? 2003 Addison Wesley TM 4- * Understanding Interest Rates chapter 4 Key points 1. yield to maturity 2. current yield 3. yield on a discount basis 4. return rate 4 types of credit instruments 1. Simple loan（普通贷款） In which the lender provides the borrower with an amount of funds, which must be repaid to the lender at the maturity date along with an additional payment for the interest. 2.Fixed-payment loan（ 固定支付贷款）（full amortized loan分期偿还债务） In which the lender provides the borrower with an amount of funds, which must be repaid by making the same payment every period. 3. Coupon bond（息票债券） In which pays the owner of the bond a fixed interest payment every year until the maturity date, when a specified final amount is repaid. Coupon rate: the dollar amount of the yearly coupon payment expressed as a percentage of the face value of the bond. 4. Discount bond （zero-coupon bond零息债券） Which is bought at a price below its face value, and the face value is repaid at the maturity date. Present Value Concept of Present Value Simple loan of $1 at 10% interest Year 1 2 3 n $110 $121 $133 $100x(1 + i)n $1 PV of future $1 = (1 + i)n Example What is the present value of $450 to be paid in 3 years if the interest rate is 20%? What is the present value of $250 to be paid in 2years if the interest rate is 15%? Yield to Maturity: Loans Yield to maturity = interest rate that equates today’s value with present value of all future payments 1. Simple Loan (i = 10%) $100 = $110/(1 + i) ? $110 – $100 $10 i = = = 0.10 = 10% $100 $100 2. Fixed Payment Loan (i = 12%) $126 $126 $126 $126 $1000 = + + + ... + (1+i) (1+i)2 (1+i)3 (1+i)25 FP FP FP FP LV = + + + ... + (1+i) (1+i)2 (1+i)3 (1+i)n 1. if you take out a loan from a bank, you need pay $900 as the yearly payment to the bank for 15 years, how much you borrowed fr