Week 4 Valuing bonds.ppt

SECTION DIVIDER [1 line only] ;Valuing Bonds ;Topics Covered;Bond Terminology;Bond Terminology;Bond Terminology;Valuing a Bond;Valuing a Bond;Valuing a Bond;Valuing a Bond;Valuing a Bond;Valuing a Bond - Short cut;Yield to Maturity of Bond;Yield to maturity;Valuing a Bond;Valuing a Bond;Valuing a Bond;Valuing a Bond;Valuing a Bond;Zero-Coupon Bonds;Zero-Coupon Bonds;Zero-Coupon Bonds;Zero-Coupon Bonds;Yields for different maturities;Yields for different maturities;Dynamic Behavior of Bond Prices;Discounts and Premiums;Discounts and Premiums;Discounts and Premiums;Determining the discount or premium of a coupon bond;Determining the discount or premium of a coupon bond;Determining the discount or premium of a coupon bond;Bond Prices and Yields;Bond Prices and Yields;Bond Prices and Yields;Interest Rate on 10yr Treasuries;？Maturity and Prices;Price-Yield Curve;Price-Yield Curve;Duration;Duration;Duration;Duration;Duration;Duration Calculation: Example 1;Duration Calculation: Example 2; Duration Calculation: Example 3;Duration as a Fulcrum;Duration as a Fulcrum (with larger coupons);Duration as a Fulcrum (with higher discount rates);Duration Bond Prices;Yield (YTM);Duration and Bond Price Sensitivity;DURATION BOND PRICES;Debt Interest Rates;ANNUAL U.S. INFLATION RATES 1900-2011;Global Inflation Rates;Inflation;Nominal and Real Interest Rates;Inflation;Inflation;GOVT. BILLS VS. INFLATION 1953-2011;GOVT. BILLS VS. INFLATION 1953-2011;GOVT. BILLS VS. INFLATION 1953-2011;THE RISK OF DEFAULT;Bond Ratings;Bond Ratings;;Bond Ratings;PRICES AND YIELDS OF CORPORATE BONDS 01/2011;Yield Spread;Sovereign Bonds and Default Risk;Sovereign Bonds and Default Risk