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Bonds ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Coupon rate ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Current yield ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Spot interest rate ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Yield to maturity (YTM) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Yield to call (YTC) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Realized YTM ,[object Object],[object Object]
Example  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],0 1 2 3 4 5 Investment 850 Annual interest 150 150 150 150 150 Reinvestment period @ 16% 4 3 2 1 0 FV of these CFs 271.5 234 202.5 174 150 Maturity value 1000
Bond prices ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Exercise 1 ,[object Object],[object Object],[object Object]
Exercise 2 ,[object Object],[object Object],[object Object],[object Object]
Exercise 3 ,[object Object],[object Object]
Exercise 4 ,[object Object]
Exercise 5 ,[object Object],[object Object],[object Object],[object Object]
Exercise 6 ,[object Object]
Bond pricing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Bond risks ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Default risk ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Interest rate risk  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Interest rate risk ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Bond duration ,[object Object],[object Object],[object Object],[object Object],[object Object]
Example ,[object Object],[object Object],Year Cash flow PVF(14%) PV PV * Year 1 12 0.8772 10.5264 10.5264 2 12 0.7695 9.234 18.468 3 12 0.675 8.1 24.3 4 12 0.5921 7.1052 28.4208 5 12 0.5194 6.2328 31.164 5 105 0.5194 54.537 272.685 95.7354 386.0402
Exercise 7 ,[object Object]
Exercise 8 ,[object Object],[object Object],[object Object],[object Object]
Exercise 9 ,[object Object]
Exercise 10 ,[object Object]

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Bond valuation

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