chap005 - Chapter 5 HOW TO VALUE BONDS AND STOCKS SLIDES...

This preview shows pages 1–5. Sign up to view the full content.

Chapter 5 HOW TO VALUE BONDS AND STOCKS SLIDES

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

View Full Document
A-70 CHAPTER 5 5.1 Key Concepts and Skills 5.2 Chapter Outline 5.3 Definition of a Bond 5.4 How to Value Bonds 5.5 The Bond Pricing Equation 5.6 Pure Discount Bonds 5.7 Pure Discount Bonds 5.8 Pure Discount Bond: Example 5.9 Level Coupon Bonds 5.10 Level Coupon Bond: Example 5.11 Level Coupon Bond: Example 5.12 Bond Example: Calculator 5.13 Bond Pricing with a Spreadsheet 5.14 Consols 5.15 Bond Concepts 5.16 YTM and Bond Value 5.17 Bond Example Revisited 5.18 Computing Yield to Maturity 5.19 YTM with Annual Coupons 5.20 YTM with Semiannual Coupons 5.21 Bond Market Reporting 5.22 Treasury Quotations 5.23 The Present Value of Common Stocks 5.24 Case 1: Zero Growth 5.25 Case 2: Constant Growth 5.26 Constant Growth Example 5.27 Case 3: Differential Growth 5.28 Case 3: Differential Growth 5.29 Case 3: Differential Growth 5.30 Case 3: Differential Growth 5.31 Case 3: Differential Growth 5.32 A Differential Growth Example 5.33 With the Formula 5.34 With Cash Flows 5.35 Estimates of Parameters 5.36 Where does R come from? 5.37 Using the DGM to Find R 5.38 Growth Opportunities 5.39 The Dividend Growth Model and the NPVGO Model 5.40 The NPVGO Model: Example
CHAPTER 5 A-71 SLIDES - CONTINUED CHAPTER WEB SITES Section Web Address 5.3 www.nasd.com www.stls.frb.org/fred/files 5.9 finance.yahoo.com End-of-chapter material www.mhhe.com/edumarketinsight CHAPTER ORGANIZATION 5.1 Definition and Example of a Bond 5.2 How to Value Bonds Pure Discount Bonds Level Coupon Bonds Consols 5.3 Bond Concepts Interest Rates and Bond Prices Yield to Maturity Bond Market Reporting 5.4 The Present Value of Common Stocks Dividends versus Capital Gains Valuation of Different Types of Stocks 5.5 Estimates of Parameters in the Dividend-Discount Model Where Does g Come From? Where Does R Come From? A Healthy Sense of Skepticism 5.6 Growth Opportunities Growth in Earnings and Dividends versus Growth Opportunities Dividends or Earnings: Which to Discount The No-Dividend Firm 5.41 The NPVGO Model: Example 5.42 Price-Earnings Ratio 5.43 Stock Market Reporting 5.44 Quick Quiz

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

View Full Document
A-72 CHAPTER 5 5.7 The Dividend Growth Model and the NPVGO Model The Dividend Growth Model The NPVGO Model Summation 5.8 Price-Earnings Ratio 5.9 Stock Market Reporting ANNOTATED CHAPTER OUTLINE Slide 5.0 Chapter 5 Title Slide Slide 5.1 Key Concepts and Skills Slide 5.2 Chapter Outline 5.1. Definition and Example of a Bond Slide 5.3 Definition of a Bond Bonds – long-term IOU’s, usually interest-only loans (interest is paid by the borrower every period with the principal repaid at the end of the loan) Coupons – the regular interest payments (if fixed amount – level coupon) Face or par value – principal, amount repaid at the end of the loan Coupon rate – coupon quoted as a percent of face value, typically paid in semiannual installments Maturity – time until face value is paid, usually given in years Yield to maturity (YTM) – the required market rate or rate that makes the discounted cash flows from a bond equal to the bond’s market price Video Note : “Bonds” follows the bond underwriting process through
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