bondsandtheirvaluation(英文版)(已修改)
2025-02-13 06:09 本頁(yè)面
【正文】 8 1 Copyright 169。 2023 by Harcourt, Inc. All rights reserved. CHAPTER 8 Bonds and Their Valuation ?Key features of bonds ?Bond valuation ?Measuring yield ?Assessing risk 8 2 Copyright 169。 2023 by Harcourt, Inc. All rights reserved. Key Features of a Bond 1. Par value: Face amount。 paid at maturity. Assume $1,000. 2. Coupon interest rate: Stated interest rate. Multiply by par to get $ of interest. Generally fixed. 8 3 Copyright 169。 2023 by Harcourt, Inc. All rights reserved. 3. Maturity: Years until bond must be repaid. Declines. 4. Issue date: Date when bond was issued. 8 4 Copyright 169。 2023 by Harcourt, Inc. All rights reserved. How does adding a “call provision” affect a bond? ?Issuer can refund if rates decline. That helps the issuer but hurts the investor. ?Therefore, borrowers are willing to pay more, and lenders require more, on callable bonds. ?Most bonds have a deferred call and a declining call premium. 8 5 Copyright 169。 2023 by Harcourt, Inc. All rights reserved. What’s a sinking fund? ?Provision to pay off a loan over its life rather than all at maturity. ?Similar to amortization on a term loan. ?Reduces risk to investor, shortens average maturity. ?But not good for investors if rates decline after issuance. 8 6 Copyright 169。 2023 by Harcourt, Inc. All rights reserved. 1. Call x% at par per year for sinking fund purposes. 2. Buy bonds on open market. Company would call if kd is below the coupon rate and bond sells at a premium. Use open market purchase if kd is above coupon rate and bond sells at a discount. Sinking funds are generally handled in 2 ways 8 7 Copyright 169。 2023 by Harcourt, Inc. All rights reserved. Financial Asset Values ( ) ( ) ( ) PV = CF 1 + k ... + CF 1 + k 1 n 1 2 2 1 CF k n . 0 1 2 n k CF1 CFn CF2 Value ... + + + 8 8 Copyright 169。 2023 by Harcourt, Inc. All rights reserved. ?The discount rate (ki) is the opportunity cost of capital, ., the rate that could be earned on alternative investments of equal risk. ki = k* + IP + LP + MRP + DRP. 8 9 Copyright 169。 2023 by Harcourt, Inc. All rights reserved. What’s the value of a 10year, 10% coupon bond if kd = 10%? ( ) ( ) ( ) V k k B d d = $100 $1 , 1 000 1 1 10 10 . . . + $100 1 + k d 100 100 0 1 2 10 10% 100 + 1,000 V = ? ... = $ + . . . + $ + $ = $1,000. + + + + 8 10 Copyright 169。 2023 by Harcourt, Inc. All rights reserved. 10 10 100 1000 N I/YR PV PMT FV 1,000 The bond consists of a 10year, 10% annuity of $100/year plus a $1,000 lump sum at t = 10: $ $1, PV annuity PV maturity value PV annuity = = = INPUTS OUTPUT 8 11 Copyright 169。 2023 by Harco
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