INVESTMENTS 投资学 （博迪BODIE, KANE, MARCUS） 全套课件（上）.ppt

Chapter 1 The Investment Environment CHAPTER 2 Asset Classes and Financial Instruments CHAPTER 3 How Securities are Traded CHAPTER 4 Mutual Funds and Other Investment Companies CHAPTER 12 Behavioral Finance and Technical Analysis CHAPTER 14 Bond Prices and Yields CHAPTER 15 The Term Structure of Interest Rates U.S. Treasury Bonds Bonds and notes may be purchased directly from the Treasury. Denomination can be as small as $100, but $1,000 is more common. Bid price of 100:08 means 100 8/32 or $1002.50 Note maturity is 1-10 years Bond maturity is 10-30 years Corporate Bonds Callable bonds can be repurchased before the maturity date. Convertible bonds can be exchanged for shares of the firm’s common stock. Puttable bonds give the bondholder the option to retire or extend the bond. Floating rate bonds have an adjustable coupon rate Preferred Stock Dividends are paid in perpetuity. Nonpayment of dividends does not mean bankruptcy. Preferred dividends are paid before common. No tax break. Equity Fixed income Innovation in the Bond Market Inverse Floaters Asset-Backed Bonds Catastrophe Bonds Indexed Bonds Treasury Inflation Protected Securities (TIPS). Table 14.1 Principal and Interest Payments for a Treasury Inflation Protected Security PB = Price of the bond Ct = interest or coupon payments T = number of periods to maturity r = semi-annual discount rate or the semi-annual yield to maturity Bond Pricing Price of a 30 year, 8% coupon bond. Market rate of interest is 10%. Example 14.2: Bond Pricing Prices and yields (required rates of return) have an inverse relationship The bond price curve (Figure 14.3) is convex. The longer the maturity, the more sensitive the bond’s price to changes in market interest rates. Bond Prices and Yields Figure 14.3 The Inverse Relationship Between Bond Prices and Yields Table 14.2 Bond Prices at Different Interest Rates Yield to Maturity Interest rate that makes the present value of the bond’s payments equal to its