Realised Yield versus YTM • Reinvestment Assumptions • Holding Period Return –Changes in rates affects returns –Reinvestment of coupon payments –Change in price of the bond 14-20 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Investments, by Bodie, Ariff, da Silva Rosa, Kane ...
28、fall.47Figure 15.3 Short Rates versus Spot Rates48fn = one-year forward rate for period nyn = yield for a security with a maturity of nForward Rates from Observed Rates49Example 15.4 Forward RatesThe forward interest rate is a forecast of a future short rate.Rate for 4-year maturity ...
53.?The ___ of a bond is computed as the ratio of coupon payments to market price.? A.?nominal yield B.?current yield C.?yield to maturity D.?yield to call ? 54.?A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8% with interest p...
8、 Bond Prices: Callable and Straight Debt14-18Example 14.4 Yield to Call14-19Realized Yield versus YTM Reinvestment Assumptions Holding Period ReturnChanges in rates affect returnsReinvestment of coupon paymentsChange in price of the bond14-20Figure 14.5 Growth of Invested Funds14-21Figure 14.6 Pr...
(投资学课件)Ch14_Bond Price and Yield.ppt,Chapter 14 Bond Price and Yield * Fixed-Income Securities Debt securities are often called fixed-income securities because they promise either a fixed stream of income or a stream of income that is determined acc
INVESTMENTS|BODIE,KANE,MARCUS 14-4 U.S.TreasuryBonds •Notematurityis1-10years•Bondmaturityis10-30years•BondsandnotesmaybepurchaseddirectlyfromtheTreasury.•Denominationcanbeassmallas$100,but$1,000ismorecommon.•Bidpriceof100:08means1008/32or$1002.50 INVESTMENTS|BODIE,KANE,MARCUS 14-5 Corp...
INVESTMENTS | BODIE, KANE, MARCUS Bond Duration versus Bond Maturity ©2018 McGraw-Hill Education 16-16 INVESTMENTS | BODIE, KANE, MARCUS Bond Durations (Yield to Maturity = 8% APR; Semiannual Coupons) ©2018 McGraw-Hill Education 16-17 INVESTMENTS | BODIE, KANE, MARCUS...
when the bond’s yield to maturity is lower Rules 5 The duration of a level perpetuity is equal to: (1+y) / y INVESTMENTS |BODIE, KANE, MARCUS 16-15 Figure 16.2 Bond Duration versus Bond Maturity INVESTMENTS |BODIE, KANE, MARCUS 16-16 Table 16.3 Bond Durations (Yield to Maturity...
INVESTMENTS|BODIE,KANE,MA1R4C-U3S U.S.TreasuryBonds •Notematurityis1-10years •Bondmaturityis10-30years •BondsandnotesmaybepurchaseddirectlyfromtheTreasury.•Denominationcanbeassmallas$100,but$1,000ismorecommon.•Bidpriceof100:08means1008/32or$1002.50 INVESTMENTS|BODIE,KANE,MA1R4C-U4S ...
secondary markets often price in prevailing rates. Instead of being able to buy the bonds at par value, the bond's price has become more expensive. You'll still get your 5% coupon rate; however, you'll have overpaid for the bonds and your true yield will...