公司理财(双语)4valuing bonds
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英文版公司理财课件chapter 4
Interest in year 2 = .06 ×$106 = $6.36 Value of investment after 1 year = $106+$6.36 = $112.36
8
Future value: amount to which an investment will grow after earning interest For an interest rate of r and a horizon of t years, Future value of $100 = $100×(1+r)t
19
The equation for future value :
future value : F = P ·（ 1+r）n
（1+r）n——future value interest factor for an initial principal of $1 compounded at r per cent for n periods, using （F/p，r，n ）。 。 F: future value at the end of period n P: initial principal, or present value r: annual rate of interest paid n: number of periods (typically years)
公司理财第四章
400 Revenues
600 Less: costs
Net Income 1000
2000 (1600)
400
4-8
Example: Pro Forma Income Statement
• Initial Assumptions
– Revenues will grow at 15% (2,000*1.15)
公司理财第四章
Key Concepts and Skills • Understand the financial planning process and how decisions are interrelated • Be able to develop a financial plan using the percentage of sales approach • Be able to compute external financing needed and identify the determinants of a firm’s
opportunities • Avoid surprises – help management identify possible outcomes and plan accordingly • Ensure feasibility and internal consistency – help management determine if goals can
公司理财(英文习题)
Corporate Finance Class Test 2
Name No。Score
PartⅠ:Choice Questions(15questions，3point each，45 points
total）
（Only one choice is the best for each question。Answer this part
on the following table。Answers in other places will not be
considered.）
A. increasing payments paid for a definitive period of time
B. increasing payments paid forever
C。 equal payments paid at regular intervals over a stated time period
D. equal payments paid at regular intervals of time on an ongoing basis
2. Your credit card company charges you 1。65 percent interest per month. What is
the annual percentage rate on your account？
A。 18.95 percent B。 19。80 percent
C. 20.90 percent
D. 21.25 percent
公司理财原版英文课件Chap024
Chapter 24
Warrants and Convertibles
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
Key Concepts百度文库and Skills
Understand how warrants and convertible bonds are similar to call options Understand how warrants and convertible bonds differ from call options Understand why corporations would issue either warrants or convertible bonds
24-8
Total Assets
Dilution Example
Assets Gold: Cash: Total Assets Balance Sheet Before (Market Value) Liabilities and Equity $3,500 Debt $1,500 Equity (3 shares) $5,000 Total 0 $5,000 $3,000
24-7
Dilution Example
Warrants and Convertibles
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
Key Concepts百度文库and Skills
Understand how warrants and convertible bonds are similar to call options Understand how warrants and convertible bonds differ from call options Understand why corporations would issue either warrants or convertible bonds
24-8
Total Assets
Dilution Example
Assets Gold: Cash: Total Assets Balance Sheet Before (Market Value) Liabilities and Equity $3,500 Debt $1,500 Equity (3 shares) $5,000 Total 0 $5,000 $3,000
24-7
Dilution Example
公司理财(双语)time value
Present Value Value today of a future cash flow.
2- 4
Simple and Compound interest
Simple interest Interest is not reinvested, is earned each period only on the original principal. Compound interest Interest means earning interest on interest.
Example - FV
t
What is the future value of $100 if interest is compounded annually at a rate of 6% for five years?
FV $100 (1 .06 ) $133 .82
5
2- 11
2- 16
Question
If the present value of $150 paid at the end of one year is $130, what is the one-year discount factor? What is the discount rate?
Calculate the one-year discount factor DF1 for discount rates of (a) 10 percent, (b) 20 percent,and (c) 30 percent
2- 4
Simple and Compound interest
Simple interest Interest is not reinvested, is earned each period only on the original principal. Compound interest Interest means earning interest on interest.
Example - FV
t
What is the future value of $100 if interest is compounded annually at a rate of 6% for five years?
FV $100 (1 .06 ) $133 .82
5
2- 11
2- 16
Question
If the present value of $150 paid at the end of one year is $130, what is the one-year discount factor? What is the discount rate?
Calculate the one-year discount factor DF1 for discount rates of (a) 10 percent, (b) 20 percent,and (c) 30 percent
公司理财(双语)4valuing bonds
PV
20 1.0248
20
1.0248
2
20
1.0248
3
20
1.0248
4
20
1.0248
5
1020
1.0248
6
$973.54
4- 25
Valuing a Bond
Example continued - USA
Take the same 3 year US Government bond. The bond has an annual coupon rate of 4%, paid semi-annually. If investors demand a 1.50% return on 6 month investments, what is the new price of the bond?
The yield to maturity is the required market interest rate on the bond.
4- 5
Bonds
Face value is the stated value of an asset. In the case of a bond, the face value is usually $1000
– T-bonds coupon debt with original maturity greater
公司理财中英文课件 (7)
23
流通债券
• 有一面值为1 000元的债券，票面利率为8%，每年支付一 次利息，2000年5月1日发行，2005年4月30日到期。现在 是2003年4月1日，假设投资的必要报酬率为10%，问该债 券的价值是多少？
24
流通债券
• 有一面值为1 000元的债券，票面利率为8%，每年支付一 次利息，2000年5月1日发行，2005年4月30日到期。现在 是2003年4月1日，假设投资的必要报酬率为10%，问该债 券的价值是多少？
26
3 Bond Concepts review
27
3 Bond Concepts review: Example
• 下列说法正确的是（ ）。 A.典型的债券是固定利率、每年计算并支付利息、到期归还 本金 B.永久债券的计算公式为：PV＝利息额/必要报酬率 C.流通债券是指已发行并在二级市场上流通的债券
$0
0
$0
$0
$1,000
1
2
29
30
F $1,000 PV $174.11 T 30 (1 r ) (1.06)
10
Pure Discount Bonds : Example
• 有一5年期国库券，面值1 000元，票面利率12%，单利计 息，到期时一次还本付息。假设折现率为10%（复利、按 年计息），其价值为多少？
Cha08 罗斯公司理财第九版原版书课后习题
Earlier in the chapter, we saw how bonds were rated based on their credit risk. What you will find if you start looking at bonds of different ratings is that lower-rated bonds have higher yields.
We stated earlier in this chapter that a bond’s yield is calculated assuming that all the promised payments will be made. As a result, it is really a promised yield, and it may or may not be what you will earn. In particular, if the issuer defaults, your actual yield will be lower, probably much lower. This fact is particularly important when it comes to junk bonds. Thanks to a clever bit of marketing, such bonds are now commonly called high-yield bonds, which has a much nicer ring to it; but now you recognize that these are really high promised yield bonds.
公司理财双语npv
Project
A B C
C0
C1 C2
- 2000 500 500
- 2000 500 1800
- 2000 1800 500
C3
5000 0 0
Payback Period
3 2 2
NPV@ 10%
2,624 - 58 50
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
The payback rule says only accept projects that “payback” in the desired time frame.
This method is very flawed, primarily because it ignores later year cash flows and the the present value of future cash flows.
Project
A B C
C0
C1 C2
- 2000 500 500
- 2000 500 1800
- 2000 1800 500
C3
5000 0 0
Payback Period
NPV@ 10%
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
4章 Bonds and Their Valuation 学习课件,财务管理英文版
(Second year) to $1,000 (the last year).
Now suppose interest rates in the economy had risen from 10 to 15 percent during the first year after issue,what would happen to the value of an MicroDrive bond?
Yield to Call (YTC)
If current interest rates are well below an outstanding bond’s coupon rate, then a callable bond is likely to be called.
The expected rate of return on this called bond is its yield to call (YTC).
PV annuity
= $ 614.46
PV maturity value = 385.54
Value of bond = $1,000.00
INPUTS 10 10
100 1000
N I/YR PV PMT FV
OUTPUT
-1,000
What would happen if expected inflation rose by 3%, causing k = 13%?
Now suppose interest rates in the economy had risen from 10 to 15 percent during the first year after issue,what would happen to the value of an MicroDrive bond?
Yield to Call (YTC)
If current interest rates are well below an outstanding bond’s coupon rate, then a callable bond is likely to be called.
The expected rate of return on this called bond is its yield to call (YTC).
PV annuity
= $ 614.46
PV maturity value = 385.54
Value of bond = $1,000.00
INPUTS 10 10
100 1000
N I/YR PV PMT FV
OUTPUT
-1,000
What would happen if expected inflation rose by 3%, causing k = 13%?
公司理财第四章
格发行新证券 • 从长期看，这个价值创造相对较小
5
问题：资本市场的作用何在？
D. 亨伍德，?华尔街——如何运作及为谁运 作?，经济科学出版社，2000年7月
股市未必是企业融资的场所 52-97年间美国企业92%的资金来自内部，
外部融资只有8% 1901至1997年新发行股票总额仅占非金融企
剩余索取权 无税收减免 在财务困难时优先
权最低 无到期日 有管理控制权
29
四、租赁融资
拥有资产的使用权比拥有资 产的所有权更重要
30
1、租赁的概念
资产融资法：以某特定资产产生的现 金流来提供资金报酬
租赁(Lease)：承租人〔lessee〕以 定期支付租赁金为代价，从出租人 〔lesser〕处取得资产的使用权
业融资的4%，其中1901至1929为11%， 1946至1979为5%，1980至1997为-11% 50年代至70年代中期，分红占税后利润44%， 90至97年占60%
6
真正的目的
公司大量举债，主在用于股票回购和兼 并。80年至97年间购并金额为3万亿美 元，是公司此期间总支出的38%
目的在于吃掉别人，或防止被别人吃掉 根本不是企业求助于华尔街的投资，而
11
按权利不同分类
靶定股 (Targeted Stock)： 股利与特定的目标挂钩 与R&D挂钩 双级股〔Dual-class common
5
问题：资本市场的作用何在？
D. 亨伍德，?华尔街——如何运作及为谁运 作?，经济科学出版社，2000年7月
股市未必是企业融资的场所 52-97年间美国企业92%的资金来自内部，
外部融资只有8% 1901至1997年新发行股票总额仅占非金融企
剩余索取权 无税收减免 在财务困难时优先
权最低 无到期日 有管理控制权
29
四、租赁融资
拥有资产的使用权比拥有资 产的所有权更重要
30
1、租赁的概念
资产融资法：以某特定资产产生的现 金流来提供资金报酬
租赁(Lease)：承租人〔lessee〕以 定期支付租赁金为代价，从出租人 〔lesser〕处取得资产的使用权
业融资的4%，其中1901至1929为11%， 1946至1979为5%，1980至1997为-11% 50年代至70年代中期，分红占税后利润44%， 90至97年占60%
6
真正的目的
公司大量举债，主在用于股票回购和兼 并。80年至97年间购并金额为3万亿美 元，是公司此期间总支出的38%
目的在于吃掉别人，或防止被别人吃掉 根本不是企业求助于华尔街的投资，而
11
按权利不同分类
靶定股 (Targeted Stock)： 股利与特定的目标挂钩 与R&D挂钩 双级股〔Dual-class common
公司理财(双语)npv
of later cash flows Biased toward liquidity
Disadvantages
Ignores the time value of money
Requires an arbitrary cutoff point
Ignores cash flows beyond the cutoff date
Since our goal is to increase owner wealth, NPV is a direct measure of how well this project will meet our goal.
McGraw Hill/Irwin
9-7 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
5- 11
Payback
Example
Examine the three projects and note the mistake we would make if we insisted on only taking projects with a payback period of 2 years or less.
Project
A B C
C0
C1 C2
- 2000 500 500
Disadvantages
Ignores the time value of money
Requires an arbitrary cutoff point
Ignores cash flows beyond the cutoff date
Since our goal is to increase owner wealth, NPV is a direct measure of how well this project will meet our goal.
McGraw Hill/Irwin
9-7 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
5- 11
Payback
Example
Examine the three projects and note the mistake we would make if we insisted on only taking projects with a payback period of 2 years or less.
Project
A B C
C0
C1 C2
- 2000 500 500
公司理财chap4-文档资料
❖If the issuer offers this investment for $1,500, should you purchase it?
0
1
2
3
4
178.57
200 400
600 800
318.88
427.07
508.41 1,432.93
Present Value < Cost → Do Not Purchase
$10,000 in one year is offered for sale for
$9,500. Your interest rate is 5%. Should you
buy?
NPV $9,500 $10,000 1.05
NPV $9,500$9,523.81
NPV $23.81
The present value of the cash inflow is greater than the cost. In other words, the Net Present Value is positive, so the investment should be purchased.
❖Mike, Don’s financial advisor, points out that if Don takes the first offer, he could invest the $10,000 in the bank at an insured rate of 12 percent.
0
1
2
3
4
178.57
200 400
600 800
318.88
427.07
508.41 1,432.93
Present Value < Cost → Do Not Purchase
$10,000 in one year is offered for sale for
$9,500. Your interest rate is 5%. Should you
buy?
NPV $9,500 $10,000 1.05
NPV $9,500$9,523.81
NPV $23.81
The present value of the cash inflow is greater than the cost. In other words, the Net Present Value is positive, so the investment should be purchased.
❖Mike, Don’s financial advisor, points out that if Don takes the first offer, he could invest the $10,000 in the bank at an insured rate of 12 percent.
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4- 3
Bonds
A bond is a security that pays a stated amount of interest to the investor, then at maturity, it repurchased by the issuing company. simply a long-term loan.
PV 5 1.038 5
1.038
2
5
1.038
3
5
1.038
4
5
1.038
5
105
1.038
6
106.33 Euros
4- 23
Valuing a Bond
Another Example - Japan
In July 2006 you purchase 200 Yen of bonds in Japan which pay a 8% coupon every year. If the bond matures in 2011 and the YTM is 4.5%, what is the value of the bond?
4- 4
Bonds (the indenture)
A bond is a legally binding agreement between a borrower and a lender that specifies the:
– – – – Par (face) value ---principal Coupon rate Coupon payment Maturity Date
$100,000
no interest!
4- 10
The yield to maturity
Yield to Maturity – the rate of return earned on a bond if it is held to maturity According to the definition, the yield to maturity of one year zero coupon bond solves the following : 96,618.336=100,000/1+YTM YTM=3.5%
4- 9
Zero-coupon bonds
Suppose that a one-year, risk-free, zero coupon bond with a 100,000 face value has an initial price of $96,618.36
Year
0 1
-$96,618.36
PV
16 1.045
16
1.045
2
16
1.045
3
16
1.045
4
216
1.045
5
243.57 Yen
4- 24
Valuing a Bond
Example - USA
In July 2006 you purchase a 3 year US Government bond. The bond has an annual coupon rate of 4%, paid semi-annually. If investors demand a 2.48% return on 6 month investments, what is the price of the bond?
T
$1,000 (1.06)
30
$174.11
4- 12
Equation
4- 13
Equation Yield to Maturity of an n-Year Zero-Coupon Bond
Example Yields for Different Maturities
4- 14
Example 8.1 Yields for Different Maturities
4- 17
Bond Price
Yield-to-maturity (YTM)
7-17
4- 18
Valuing a Bond
PV
C1 (1 r )
1
C2 (1 r )
2
...
1,000 C N (1 r )
N
4- 19
Coupon bonds
Like zero-coupon bonds, coupons bonds pay investors their face value at maturity. In addition, these bonds make regular coupon interest payments.
4- 15
4- 16
Equation Risk-Free Interest Rate with Maturity n
Graphical Relationship Between Price and Yield-to-maturity (YTM)
1500 1400 1300 1200 1100 1000 900 800 700 600 0% 2% 4% 6% 8% 10% 12% 14%
– The face value is supposed to be paid back to the bondholders as the principal, no matter what the purchasing price of the bond
Coupon：annual interest payment Coupon rate: the stated rate of interest on a bond; or the annual interest payment divided by bond’s face value
The yield to maturity is the required market interest rate on the bond.
4- 5
Bonds
Face value is the stated value of an asset. In the case of a bond, theLeabharlann Baiduface value is usually $1000
Principles of Corporate Finance
Ninth Edition
Chapter 4
Valuing Bonds
4- 2
Topics Covered
Bonds Using The Present Value Formula to Value Bonds How Bond Prices Vary With Interest Rates The Term Structure and YTM
4- 11
Pure Discount Bonds: Example
Find the value of a 30-year zero-coupon bond with a $1,000 par value and a YTM of 6%.
$0
$0
$0
$1,000
0
1
2
29
30
PV
F (1 r )
4- 6
Treasury Bond – issued by the federal government. Corporate Bond – issued by corporations. Municipal Bonds – issued by state and local governments. Foreign Bonds – issued by either foreign governments or foreign corporations.
PV
115 1.075
115
1.075
2
115
1.075
3
115
1.075
4
1,115
1.075
5
$1,161.84
4- 22
Valuing a Bond
Example - Germany
In July 2006 you purchase 100 Euros of bonds in Germany which pay a 5% coupon every year. If the bond matures in 2012 and the YTM is 3.8%, what is the value of the bond?
4- 7
Government Bonds
U.S. Government Bonds
– Treasury bills – pure discount bonds with original maturity of one year or less – T-notes – coupon debt with original maturity between one and ten years
PV
20 1.0248
20
1.0248
2
20
1.0248
3
20
1.0248
4
20
1.0248
5
1020
1.0248
6
$973.54
4- 25
Valuing a Bond
Example continued - USA
Take the same 3 year US Government bond. The bond has an annual coupon rate of 4%, paid semi-annually. If investors demand a 1.50% return on 6 month investments, what is the new price of the bond?
Cash Flows Sept 08 09 10 11 12 115 115 115 115 1115
4- 21
Valuing a Bond
Example continued
If today is October 1, 2007, what is the value of the following bond? An IBM Bond pays $115 every September 30 for 5 years. In September 2012 it pays an additional $1000 and retires the bond. The bond is rated AAA (WSJ AAA YTM is 7.5%)
PV
20 1.015
20
1.015
2
20
1.015
3
20
1.015
4
20
1.015
5
1020
1.015
6
$1,028.49
Yield to Maturity of a Coupon Bond
4- 26
Example 8.3 Computing the Yield to Maturity of a Coupon Bond
4- 20
Valuing a Bond
Example If today is October 1, 2007, what is the value of the following bond? An IBM Bond pays $115 every September 30 for 5 years. In September 2012 it pays an additional $1000 and retires the bond. The bond is rated AAA (WSJ AAA YTM is 7.5%)
– T-bonds coupon debt with original maturity greater
than ten years
7-7
4- 8
Zero-coupon bonds
is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity. (pure discount bonds) A bond that does not make coupon payments. The only cash payment the investor receives is the face value of the bond on maturity date. Eg: Treasury bills