Stuff you must know - 3 Corporate bonds pay semi-annual coupons(so assume semi-annual coupon payments unless stated otherwise 4 The face value of a

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Required Material for Midterm Textbook: up to and including Chapter 8 (see syllabus for required sections). Sections that were not covered in the lectures, seminars or assignments will only be tested using multiple choice questions. Equity is the last topic you will need to study from the lecture and seminar notes (know NPVGO!). There will be no CCA related questions on the midterm. Stuff you must know: 1. The quoted interest rate on mortgages in Canada is a semi-annually compounded APR. 2. The yield-to-maturity (YTM) is defined as a semi-annually compounded APR.
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Unformatted text preview: 3. Corporate bonds pay semi-annual coupons (so assume semi-annual coupon payments unless stated otherwise). 4. The face value of a bond is $1,000. 5. Duration is measured in years. 6. The price of the stock is the present value of all future dividends (D 1 , D 2 etc.) and it does not include the dividend just paid, i.e. it does not include D . This is often referred to as the stock price being ex-dividend. (Also, for simplicity, we assume that dividends are paid annually.) 1...
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This note was uploaded on 11/01/2011 for the course BUSINESS FIN301 taught by Professor Andrew during the Fall '10 term at University of Alberta.

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