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A Review OF BOND Valuation
Course: Human Resource Management (MGT-311)
75 Documents
Students shared 75 documents in this course
University: Comilla University
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A REVIEW OF BOND VALUATION
INTRODUCTION
Bonds are investment securities where an investor lends money to a
company or a government for a set period of time, in exchange for
regular interest payments. Valuation of bond is very critical process. To
Avoid error careful attention is must. In our term paper we discuss about
valuation of bond in details. Firstly, we discuss Interest rate
fundamentals Under this we discuss interest rate, required return,
inflation, liquidity preference, nominal rate of interest, real rate of
interest. Secondly, we discuss about Valuation fundamentals, Basic
valuation model, Bond valuation till semi-annual Changes in bond
values, YTM (Compound annual rate of return earned on a debt security
purchased on a given day and held to maturity. An estimate of the
market's required return on a particular bond). Finally, in our term paper
we discuss about. Theories of the term structure, General Features of a
Bond yields, Bond prices, Bond ratings Common types of
bonds(debentures, subordinate debentures, income bond, mortgage
bonds collateral trust bonds equipment trust certificates &
characteristics
