11

PEMBELANJAAN PEMBELANJAAN PERUSAHAANPERUSAHAAN

PEMBELANJAAN PEMBELANJAAN PERUSAHAANPERUSAHAAN

LECTURE 7a – VALUATION LECTURE 7a – VALUATION ON DEBT / BONDON DEBT / BOND

PP/MB-IPB/10 22

Basic Valuation ModelBasic Valuation Model

V0 = CF1 + CF2 + … + CFn

(1 + k)1 (1 + k)2 (1 + k)n

Where:

V0 = value of the asset at time zero

CFt = cash flow expected at the end of year t

k = appropriate required return (discount rate)

n = relevant time period

PP/MB-IPB/10 33

What is a Bond?What is a Bond?

A bond is a long-term debt instrument that pays the bondholder a specified amount of periodic interest over a specified period of

time.

(note that a bond = debt)

PP/MB-IPB/10 44

General Features of Debt General Features of Debt InstrumentsInstruments

The bond’s principal is the amount borrowed by the

company and the amount owed to the bond holder on the

maturity date.

The bond’s maturity date is the time at which a bond

becomes due and the principal must be repaid.

The bond’s coupon rate is the specified interest rate (or $

amount) that must be periodically paid.

PP/MB-IPB/10

Untuk melihat file Untuk melihat file lengkapnya silahkan lengkapnya silahkan

menghubungi kami di menghubungi kami di www.mb.ipb.ac.id