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Unformatted text preview: 1) Discount bond 2) Coupon bond b. Yield to maturity c. Compounding intervalssemiannual d. Discount bond, par bond, premium bond e. Yield Curve f. Relation between bond prices and interest rates g. Interest rate risk h. Nominal vs. real rate 4. Stock Valuation a. Dividend discount models (DDMs) b. Constant dividends c. Constant growth dividends d. Different growth rate for different time periods 5. How to make investment decisions a. NPV (best) b. Payback (bad) c. Accounting rates of return (bad) d. IRR (problematicin certain limited circumstances, okay) e. Profitability Index (similar issues as IRR) f. Using calculator to find NPV and IRR for uneven cash flows...
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 Winter '11
 Zheng
 Management

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