BUFN740Homework1
114970572MengyaCao
Question 1
Although we stated that real assets comprise the true productive capacity of an economy, it
is hard to conceive of a modern economy without welldeveloped financial markets and
security types. How would the p
Chapter 1
Introduction to Financial
Management
Key Concepts and Skills
Know the basic types of financial
management decisions and the role of
the financial manager
Know the financial implications of the
different forms of business organization
Know the
Chapter
5
04/10/16
Discounted Cash
Flow Valuation
Discounted Cash Flow Valuation
Key Concepts and Skills
Be able to compute the future value of multiple
cash flows
Be able to compute the present value of multiple
cash flows
Be able to compute loan paym
Chapter
4
Introduc)on to Valua)on:
The Time Value of Money
9/25/16
The Time Value of Money
Key Concepts and Skills
uBe able to compute the future value of an
investment made today
uBe able to compute the present value of
cash to be received at some fu
Working With Financial
Statements
Essentials of Corporate Finance
Who uses Financial Statement Analysis?
Almost Everyone in the Business World
Bankers analyze loans and cash flow
Portfolio Managers projections of stock prices
Marketing Managers market
Chapter 2
Financial Statements, Taxes, and
Cash Flow
1
Key Concepts and Skills
Know the difference between book
value and market value
Know the difference between
accounting income and cash flow
Know the difference between average
and marginal tax rat
ChinasBondMarket
BY GIGI LIU, HUI OUYANG, JESSICA ZHANG
(
(2010)
)
J.Y.YangNankaiUniversity
1
The Ministry of Finance (MoF) resumed
issuing treasury bonds with a private placement
in 1981. The
i 1981 Th public li ti
bli listing and t di
d trading of b d
Yield curve and
the term structure
Fixed Income Markets and Their
Derivatives, 3rd edition
by Suresh Sundaresan
Yield curve analysis
Yield curve is a term used to describe the plot of
yield to maturity against time to maturity or
against a risk measure,
Credit default swaps: Singlename and indexes
1. Fixed Income Markets and Their Derivatives( 3rd edition),
by Suresh Sundaresan
2. Credit derivatives: Application, Pricing and Risk
Management, by Meissner (2005)
3. Credit Derivatives: A Primer on Credit Ri
Appendix: Itos Lemma and General
Pricing Formula
Brownian Process
Fix a given time interval [0,t] (for instance, one
year, i.e., t=1) and let us divide it into n intervals,
each of them with length
Let Zi be a random variable that has a 50%
chance of be
Models of Yield Curve and
the Term Structure
Fixed Income Markets and Their Derivatives,
3rd edition, by Suresh Sundaresan
Fixed Income Securities: Valuation, Risk and
Risk Management, by Pietro Veronesi
Introduction
In modeling term structure of interes
Duration and Convexity
FixedIncomeMarketsandTheir
Fixed Income Markets and Their
Derivatives,3rd edition,
bySureshSundaresan
b S
hS d
Measurement of Interest Rate Risk
DV01 ( PVBP)
Duration
Convexity
Modern Interest Rate Models
Interest Rate Volatility
Va
Overview of
Fixed Income Markets
FixedIncomeMarketsandTheir
Fixed Income Markets and Their
Derivatives,3rd edition,
bySureshSundaresan
b S
hS d
Overview of Debt Contracts
Debt securities are issued by borrowers to obtain
liquidity (cash) or capital for e
Mortgagebacked Securities
FixedIncomeMarketsandTheir
Derivatives,3rd edition
bySureshSundaresan
Home ownership in many countries is achieved
through a mortgage , which is, in
essence, a secured loan.
The family that wants to own a home will typically
p
Priceyield Conventions
FixedIncomeMarketsandTheir
Fixed Income Markets and Their
Derivatives,3rd edition,
bySureshSundaresan
b S
hS d
Concepts of Compounding and
Discounting
Price may be the most important piece of
information for a security.
In debt m
Reading Notes
1.Paper Resource
Helen Ding, Paulo A.L.D. Nunes, December 2013,Modeling the links between
biodiversity, ecosystemservices and human wellbeing in the context of climate
change: Results from an econometric analysis of the European forest ecosy
4
1.Research question

Before we study the capital asset pricing model  combined with the market excess return excess
yield a linear relationship exists, then the combination of excess returns and market excess returns
nonlinear relationship exists be
7
39
1.(Research Question)
(We want to explore the urban residents per capita annual consumer durables spending
and per capita annual disposable income, consumer durables price index.)
2.(Data)
Y X 1
X 2 li39.wfl
1 Y 190.4827
X 1 3051.491 X 2 13
2
1.Research Question
Ordinary Least
Squares
Research expenditure of urban residents per capita annual consumer durables whether the per
capita annual disposable income and consumer durables price index is a linear function; well
founded if the propositi