Bond Analysis(2) - Coupon Rate Coupon Payment Years to...

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Unformatted text preview: Coupon Rate Coupon Payment Years to Maturity Premium Bond Discount Bond Zero Coupon 13% 7% 0% $65 $35 $0 Premium Bond Discount Bond Zero Coupon 15 $1,230.59 $769.41 $231.38 14 $1,223.47 $776.53 $255.09 13 $1,215.63 $784.37 $281.24 12 $1,206.98 $793.02 $310.07 11 $1,197.45 $802.55 $341.85 10 $1,186.93 $813.07 $376.89 9 $1,175.34 $824.66 $415.52 8 $1,162.57 $837.43 $458.11 7 $1,148.48 $851.52 $505.07 6 $1,132.95 $867.05 $556.84 5 $1,115.83 $884.17 $613.91 4 $1,096.95 $903.05 $676.84 3 $1,076.14 $923.86 $746.22 2 $1,053.19 $946.81 $822.70 1 $1,027.89 $972.11 $907.03 0 $1,000.00 $1,000.00 $1,000.00 Premium Bond $2,950.00 $2,667.64 $2,419.42 $2,200.79 $2,007.84 $1,837.21 $1,686.02 $1,551.76 $1,432.30 $1,325.78 $1,145.34 $1,068.82 $1,000.00 $937.95 $881.90 $1,230.59 YTM 11% 12% 13% 14% 15% 10% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% Price % Change, Capital Gains Y Discount Bond Zero Coupon Premium Bond $2,050.00 $1,000.00 139.7% $1,833.82 $861.03 116.8% $1,645.19 $741.92 96.6% $1,480.32 $639.76 78.8% $1,335.95 $552.07 63.2% $1,209.30 $476.74 49.3% $1,098.00 $411.99 37.0% $1,000.00 $356.28 26.1% $913.54 $308.32 16.4% $837.11 $267.00 7.7% $709.33 $655.88 $608.24 $565.68 $527.58 $769.41 $200.64 $174.11 $151.19 $131.37 $114.22 $231.38 ­6.9% ­13.1% ­18.7% ­23.8% ­28.3% 0.0% 16% 17% 18% 19% 20% Coupon Rate Maturity YTM 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% $831.13 $785.06 $743.16 $704.96 $670.06 10% 15 15 Years $2,500.00 $2,250.73 $2,032.31 $1,840.55 $1,671.89 $1,523.26 $1,392.01 $1,275.88 $1,172.92 $1,081.44 $1,000.00 $493.40 $462.66 $434.95 $409.92 $387.25 10% 10 $99.38 $86.52 $75.37 $65.70 $57.31 10% 5 5 Years $1,500.00 $1,437.87 $1,378.85 $1,322.78 $1,269.48 $1,218.80 $1,170.60 $1,124.75 $1,081.11 $1,039.56 $1,000.00 ­32.5% ­36.2% ­39.6% ­42.7% ­45.5% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 10% Price 10 Years $2,000.00 $1,854.43 $1,721.82 $1,600.90 $1,490.54 $1,389.73 $1,297.55 $1,213.19 $1,135.90 $1,065.04 $1,000.00 % Change, Capital Gains Y 15 Years 150.0% 125.1% 103.2% 84.1% 67.2% 52.3% 39.2% 27.6% 17.3% 8.1% ­7.3% ­13.8% ­19.6% ­24.8% ­29.5% ­33.8% ­37.6% ­41.1% ­44.3% ­47.1% 0.0% $927.33 $862.35 $804.12 $751.82 $704.74 $662.27 $623.86 $589.05 $557.44 $528.65 $940.25 $885.30 $834.72 $788.12 $745.14 $705.46 $668.78 $634.86 $603.44 $574.32 $962.31 $926.40 $892.17 $859.53 $828.40 $798.70 $770.35 $743.29 $717.45 $692.77 Coupon Rate 10% Years to Maturity Current YTM 15 10.00% 14 9.50% 13 9.30% 12 9.00% 11 8.80% 10 9.30% Bond Price $1,000.00 $1,038.28 $1,052.18 $1,072.48 $1,083.48 $1,044.94 P $1,100.00 $1,080.00 $1,060.00 $1,040.00 $1,020.00 P $1,100.00 $1,080.00 9 8 7 6 5 4 3 2 1 0 9.80% 9.70% 9.30% 8.80% 9.10% 9.50% 9.00% 8.90% 8.60% 9.00% $1,011.78 $1,016.43 $1,035.43 $1,055.03 $1,035.52 $1,016.32 $1,025.79 $1,019.75 $1,013.15 $1,000.00 $1,060.00 $1,040.00 $1,020.00 $1,000.00 $980.00 $960.00 $940.00 15 14 13 12 11 YTM Par Value Maturity (Years) 10% $1,000 15 $ Price Change Over Time $1,400.00 $1,200.00 $1,000.00 $800.00 $600.00 $400.00 $200.00 $0.00 15 14 13 12 11 10 9 8 7 6 5 4 3 Years to Maturity % Change, Capital Gains Yield Discount Bond Zero Coupon 166.4% 332.2% 138.3% 272.1% 113.8% 220.7% 92.4% 176.5% 73.6% 138.6% 57.2% 106.0% 42.7% 78.1% 30.0% 54.0% 18.7% 33.3% 8.8% 15.4% ­7.8% ­14.8% ­20.9% ­26.5% ­31.4% 0.0% % Price Change Ov 400.0% 350.0% 300.0% 250.0% 200.0% 150.0% 100.0% 50.0% 0.0% -50.0% ­13.3% ­24.8% ­34.7% ­43.2% ­50.6% 0.0% -100.0% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 1 YTM 100.0% 50.0% 0.0% ­35.9% ­39.9% ­43.5% ­46.7% ­49.7% ­57.0% ­62.6% ­67.4% ­71.6% ­75.2% -50.0% -100.0% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 1 YTM % Change, Capital Gains Yield 10 Years 5 Years 100.0% 50.0% 85.4% 43.8% 72.2% 37.9% 60.1% 32.3% 49.1% 26.9% 39.0% 21.9% 29.8% 17.1% 21.3% 12.5% 13.6% 8.1% 6.5% 4.0% ­6.0% ­11.5% ­16.5% ­21.2% ­25.5% ­29.5% ­33.1% ­36.5% ­39.7% ­42.6% 0.0% % Price Change Over 200.0% 150.0% 100.0% ­3.8% ­7.4% ­10.8% ­14.0% ­17.2% ­20.1% ­23.0% ­25.7% ­28.3% ­30.7% 0.0% 50.0% 0.0% -50.0% -100.0% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 11% 13% 10% 12% 14% YTM Price Change Over Time and YTM 10.50% 10.00% 9.50% 9.00% Bond P Curren Price Change Over Time and YTM 10.50% 10.00% 9.50% 9.00% 8.50% 8.00% 7.50% 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 Years to Maturity Bond P Curren ge Over Time Premium Bond Discount Bond Zero Coupon 7 6 5 4 3 2 1 0 Price Change Over YTM Premium Bond Discount Bond Zero Coupon 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% YTM 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% YTM rice Change Over YTM 15 Years 10 Years 5 Years 8% 9% 11% 13% 15% 17% 19% 10% 12% 14% 16% 18% 20% YTM 10.50% 10.00% 9.50% 9.00% Bond Price Current YTM 10.50% 10.00% 9.50% 9.00% 8.50% 8.00% 7.50% 1 0 Bond Price Current YTM ...
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This note was uploaded on 04/05/2011 for the course FIN 350 taught by Professor Debruinne during the Winter '11 term at Grand Valley State University.

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