university_of_saskatchewan公司財(cái)務(wù)導(dǎo)論(金融學(xué))(2)-資料下載頁
2025-10-09 21:02本頁面
【正文】 f Moody’s higher ratings. The bonds have a low probability of default. Fall 2021 COMM 203 37 The Bond Indenture ? The bond indenture is a threeparty contract between the bond issuer, the bondholders, and the trustee. ? The trustee is hired by the issuer to protect the bondholders’ interests. ? What do you think would happen if an issuer refused to hire a trustee? Fall 2021 COMM 203 38 The Bond Indenture ? The indenture includes ? The basic terms of the bond issue ? The total amount of bonds issued ? A description of the security ? The repayment arrangements ? The call provisions ? Details of the protective covenants Fall 2021 COMM 203 39 Bond Ratings InvestmentQuality Bond Ratings High Grade Medium Grade Moody’s Aaa Aa A Baa DBRS (Samp。P) AAA AA A BBB Low Quality, speculative, and/or “Junk” Low Grade Very Low Grade Moody’s Ba B Caa Ca C D DBRS (Samp。P) BB B CCC CC C D Fall 2021 COMM 203 40 Bond Ratings and Default Probabilities Source: Moody’s Investor Service, Special ments, January 2021 Fall 2021 COMM 203 41 Bond Ratings and Default Probabilities Rating Transition Rates, 19702021。 5Year Horizon Averages Rating to: Aaa Aa A Baa Ba B CaaC Default WR Aaa Aa Rating A from: Baa Ba B CaaC Source: Moody’s Investor Service, Special ments, February 2021 Fall 2021 COMM 203 42 Factors Affecting Bond Yields Key Issue: What factors affect observed bond yields? ? The real rate of interest ? Expected future inflation ? Interest rate risk ? Default risk premium ? Taxability premium ? Liquidity premium Fall 2021 COMM 203 43 Problem ? Joe Kernan Corporation has bonds on the market with years to maturity, a yieldtomaturity of 8 percent, and a current price of $850. The bonds make semiannual payments. What must the coupon rate be on the bonds? Total number of coupon payments = ? 2 = 21 Yield to maturity per period = 8% / 2 = 4% Maturity value = F = $1000 Fall 2021 COMM 203 44 Problem ? Bond J is a 4% coupon bond. Bond K is a 10% coupon bond. Both bonds have 8 years to maturity, make semiannual payments, and have a YTM of 9%. If interest rates suddenly rise by 2%, what is the percentage price change of these bonds? What if rates suddenly fall by 2% instead? What does this problem tell you about the interest rate risk of lowercoupon bonds? Fall 2021 COMM 203 45 ? Percentage Changes in Bond Prices Solution to Problem Bond Prices and Market Rates 7% 9% 11% Bond J $ $ $ % chg. (+%) (–%) Bond K $1, $1, $ % chg. (+%) (–%) All else equal, the price of the lowercoupon bond changes more (in percentage terms) than the price of the highercoupon bond when market rates change
教學(xué)課件相關(guān)推薦
鄂ICP備17016276號(hào)-1