Day 6-Part 2.1

# Day 6-Part 2.1 - Day6:Part2 Chapter7:StockValuation...

This preview shows pages 1–6. Sign up to view the full content.

Business Management 301 Day  6: Part 2 Chapter 7: Stock Valuation July 7, 2011

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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%

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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            6.43 What is the yield to maturity of this Treasury bond?  (Note:  T-bonds are traded in 32nds, Today is 2011.)

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern