内容资料文本jonathan整理的bf lecture6 bb.pptVIP

* * * * * * * * * * * * * * * * * * * Understanding Interest Rates * Present Value A dollar paid to you one year from now is less valuable than a dollar paid to you today * Discounting the Future * Simple Present Value * Four Types of Credit Market Instruments Simple Loan Fixed Payment Loan Coupon Bond Discount Bond * Yield to Maturity The interest rate that equates the present value of cash flow payments received from a debt instrument with its value today * Simple Loan—Yield to Maturity * * Coupon Bond—Yield to Maturity * When the coupon bond is priced at its face value, the yield to ma