111
Lec 5- Bond and Stock Valuation
Bonds and Bond Valuation. 6-2 1. Understand basic bond terminology and apply the time value of money equation in pricing bonds. 2.Understand the difference.
EAR/APR Time Value of Money. Returns and Compounding Returns are often stated in annual terms Interest is paid (accrues) within the year Example: Savings.
1 IS-LM Model LM Function. 2 Outline Introduction Assets Market Bond Market Money Market Money Demand Md = Mt + Ma Transaction Demand Mt = dY Asset Demand.
Bond Price Volatility
Yield to Maturity
CPA, MBA BY RACHELLE AGATHA, CPA, MBA Long-Term Liabilities: Bonds and Notes Slides by Rachelle Agatha, CPA, with excerpts from Warren, Reeve, Duchac.
Planning Your Financial Future, 4e by: Boone, Kurtz & Hearth Buying and Selling Securities Chapter 13.
11-114-1 Long-Term Liabilities: Bonds and Notes 14 Principles of Financial Accounting, 11e Reeve Warren Duchac.
Review. Principle of separation Present discounted value the real investment. (equivalence). Decide whether to undertake it (optimization). Select.
There are three Important securities in the capital market. Bonds / Debentures Preference shares Equity shares Securities and their valuation What is a.
