Ch_06_Bond_Valuation

Ch_06_Bond_Valuation - A 1 2 3 4 5 6 7 8 9 10 11 12 13 14...

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Annual Payments Inputs Number of Periods to Maturity (T) 8 Face Value (PAR) $1,000.00 Discount Rate / Period (r) 4.26% Coupon Payment (PMT) $45.00 Bond Price using a Timeline Period 0 2 3 4 5 6 7 8 Cash Flows $45.00 $45.00 $45.00 $45.00 $45.00 $45.00 $45.00 $1,045.00 Present Value of Cash Flow $43.16 $41.40 $39.71 $38.08 $36.53 $35.04 $33.60 $748.47 Bond Price $1,015.99 Bond Price using the Formula Bond Price (P) $1,015.99 Bond Price using the PV Function Bond Price $1,015.99 B OND V ALUATION ( 29 ( 29 ( 29 ( 29 1 1 1 T T PMT r PAR P r r - - + = + + A B C D E F G H I J 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
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Dynamic Chart Annual Percentage Rate Inputs Rate Convention 2 Annual Coupon Rate 4.625% 9 Yield to Maturity (Annualized) 3.94% 7 Number of Payments / Year 2 2 Face Value (PAR) $1,000.00 20 Outputs Discount Rate / Period (r) 1.97% Coupon Payment (PMT) $23.13 Dynamic Chart Outputs Time to Maturity (Years) 1 2 3 4 5 6 7 8 9 Number of Periods to Maturity (T) 2 4 6 8 10 12 14 16 18 Bond Price of Coupon Bond $1,006.65 $1,006.65 $1,006.65 $1,006.65 $1,006.65 $1,006.65 $1,006.65 $1,006.65 $1,006.65 Bond Price of Par Bond $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 B OND V ALUATION 0 5 10 15 20 25 30 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 Dynamic Chart of Bond Pricing Time To Maturity (Years)
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This note was uploaded on 09/08/2010 for the course BUS 173A at San Jose State.

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Ch_06_Bond_Valuation - A 1 2 3 4 5 6 7 8 9 10 11 12 13 14...

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