您现在的位置: 精品资料网 >> 财务管理 >> 财务知识 >> 资料信息

Bonds and Their Valuation(英文版)(ppt 50页)

所属分类:
财务知识
文件大小:
241 KB
下载地址:
相关资料:
英文版
Bonds and Their Valuation(英文版)(ppt 50页)内容简介
Bonds and Their Valuation(英文版)内容提要:
How does adding a “call provision” affect a bond?
Issuer can refund if rates decline.  That helps the issuer but hurts the investor.
Therefore, borrowers are willing to pay more, and lenders require more, on callable bonds.
Most bonds have a deferred call and a declining call premium.
Sinking funds are generally handled in 2 ways
1.Call x% at par per year for sinking fund purposes.
2.Buy bonds on open market.
Company would call if kd is below the coupon rate and bond sells at a premium.  Use open market purchase if kd is above coupon rate and bond sells at a discount.

..............................