Day 6-Part 2.1

Day 6-Part 2.1 - Business Management 301 Day 6: Part 2...

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Unformatted text preview: Business Management 301 Day 6: Part 2 Chapter 7: Stock Valuation July 7, 2011 Day 6: Part 2 Agenda 1) Personal Finance Discussion Topics 2) Midterm Review? 3) Chapter 7: Stock Valuation Discussion Financial Pages: Corporate Bonds Cur Net Bonds Yld Vol Close Chg Eckerd 9 1 / 4 15 8.6 20 107 1 / 2 ... What is Eckerd’s yield to maturity (today=2011)? P/YR: 1 FV: 1000 PV: -$1,075 [107.5% x 1000 or 1.075 x 1000 = 1075] N: 8 [2015-2011 = 4; 4 yrs x 2 pmts/yr = 8] PMT: 46.25 [(0.0925 x 1000)/2 = 46.25] I/YR: ? 7.06% [3.5324 x 2 = 7.06%] Note: You are using a factor of TWO for the semiannual payments so you must double the I/Yr to find YTM! Current Yield: Annual Coupon/Current Price 92.50/1075=0.086 CY = 8.6% Financial Pages: Corporate Bonds Cur Net Bonds Yld Vol Close Chg AlldC zr 20 ... 30 43 5 / 8 +2 What is Allied Chemical’s yield to maturity (Today = 2011)? P/YR: 1 N: 9 [2020 – 2011 = 9] FV: 1000 PV: -$436.25 [5/8 = 0.625; 43.625% x 1000 or 0.43625 x 1000 = 436.25] PMT: 0 [zr is abbreviation for ZERO coupon] I/YR: ? 9.655% Financial Pages: Treasury Bonds Maturity Ask Rate Mo/Yr Bid Asked Chg Yld 9 Nov 29 128:18 128:24 +13...
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This note was uploaded on 11/17/2011 for the course BUS M 301 taught by Professor Jimbrau during the Summer '11 term at BYU.

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Day 6-Part 2.1 - Business Management 301 Day 6: Part 2...

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