Содержание
- 2. FEATURES OF BONDS A bond is a long-term debt instrument that pays the bondholder a specified
- 3. COUPON PAYMENT A bond has a 7% coupon and pays interest semi-annually. What is the amount
- 4. BONDS WITH MATURITY DATES For example, find the price of a 10% coupon bond with three
- 5. BOND PRICING A bond has a 9% coupon rate, matures in 12 years and pays interest
- 6. TIME TO MATURITY A bond is currently selling at a price of $977.03. The face value
- 7. FEATURES OF BOND The bond’s current yield is the annual interest (income) divided by the current
- 8. CURRENT YIELD The Current Yield measures the annual return to an investor based on the current
- 9. CURRENT YIELD Annual income (interest or dividends) divided by the current price of the security. This
- 10. CURRENT YIELD An 8%, semi-annual coupon bond has a $1,000 face value and matures in 8
- 11. CURRENT YIELD Enter 8×2 7.8/2 80/2 1,000 N I/Y PV PMT FV Solve for ±1,011.74
- 12. YIELD TO MATURITY (YTM) The yield to maturity measures the compound annual return to an investor
- 13. YIELD TO MATURITY A 6% bond pays interest annually and matures in 14 years. The face
- 14. YIELD CURVE
- 15. HOLDING PERIOD YIELD You bought a bond exactly one year ago for $1,004.50. Today, you sold
- 16. INTEREST RATE RISK You own two bonds. Both bonds have a 6% coupon and pay interest
- 17. INTEREST RATE RISK Bond A: Enter 2×2 7/2 60/2 1,000 N I/Y PV PMT FV Solve
- 18. BONDS WITH MATURITY DATES
- 19. PRICE CONVERGES ON PAR AT MATURITY It is also important to note that a bond’s price
- 20. YIELD TO MATURITY The yield to maturity measures the compound annual return to an investor and
- 21. ZERO COUPON BOND You are considering purchasing a 10-year, zero coupon bond with a face value
- 22. ZERO COUPON BOND Winslow, Inc. issues 20-year zero coupon bonds at a price of $224.73. The
- 23. CORPORATE BOND QUOTE
- 24. CORPORATE BOND QUOTE The closing price of a bond is quoted in the newspaper as 101.366.
- 25. TYPES OF BONDS
- 26. NOMINAL OR ACTUAL RATE OF INTEREST (RETURN) The nominal rate of interest is the actual rate
- 27. NOMINAL OR ACTUAL RATE OF INTEREST Using this notation, the nominal rate of interest for security
- 28. FISHER EFFECT Last year, you earned 14.59% on your investments. The inflation rate was 4.30% for
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