1. BA 3341 Business FinanceNataliya Polkovnichenko, Senior LecturerClass Notes: Set 3Valuing Bonds 1 2. Outline• Bond Definitions• Valuation of Bonds• Yield to Maturity…

Yield to Maturity (YTM) * Yield to Maturity (YTM) The yield to maturity is the discount rate that makes the present value of the bondâs promised interest and principal equal…

Aswath Damodaran! 1! Valuation: Basics! Aswath Damodaran Aswath Damodaran! 2! Approaches to Valuation!   Intrinsic valuation, relates the value of an asset to the present…

Slide 1 1 Chapter Twelve Principles of Bond Valuations and Investments McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. Slide 2 2 Bond: Players…

Accounting for Long Term Liabilities Ch 10 – Acc 1a Different Ways to Finance a Company Borrowing from a Bank (Ch 9): Notes Payable – More expensive and restrictive than…

Value of Bond as Debt and as Stock Value of Comparable Nonconvertible Bond (Straight-Debt Value) Price of Stock Conversion Value Bond Market Value Conversion Premium * Convertibles…

Liabilities Current liabilities: due in one year or less Types Ratios Long-term liabilities: due in more than one year Bonds Capital leases versus operating leases Contingent…

CHAPTER 8 Bonds and Their Valuation CHAPTER 7 Bonds and Their Valuation 7-â¹#⺠7-â¹#⺠What is a bond? A long-term debt instrument in which a borrower agrees to…

Chapter 12 Principles of Bond Valuations and Investments Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Objectives Describe how…