Bond and Stock Valuation - Basics
Understand what bonds are, how to value them, and be able to
Examine the risks inherent in bonds and how they vary
Understand how to value stocks, be able to price them
Why do we care?
Bonds are a major source of financing all over the world
Bonds are issued by corporations, government agencies, and
governments of all levels
Understanding risks of bonds allows us to make informed
Valuing stocks and bonds will help us later when trying to
determine cost of capital
© 2008, Sandeep Dahiya and Lee Pinkowitz. Do not copy or use these notes without permission.