Find
Search for over 200,000 study notes and past assignments!
Swap
Download study resources by swapping your own or buying Exchange Credits.
Study
Study from your library anywhere, anytime.
FINS2624 HD Student Notes (Full-Version)
FINS2624 - Portfolio Management
89 Pages • Complete Study Notes • Year: Pre-2021
Lecture 1 Introduction to Bond Pricing BKM 14.2, 14.3 What is a bond? Essentially a borrowing-lending contract. Three key parameters of a typical borrowing-lending contract: – principal, maturity, interest rate A bond is a claim on some fixed future cash flow(s), CF. T: the bond matures at the time of its last cash flow. Maturity (date): date on which the principal amount is paid. FV: typically, a “large” cash flow at maturity, par value or face value. Coupons: there may be a series of smaller cash flows before maturity. – There may be zero, one or more coupons in a given year. Yield-to-maturity (yield) for a bond – The rate of return of an investment in a bond that is held to its maturity date. Coupon rate: the sum of the annual coupons is often expressed as a fraction of the FV. – Let’s denote the actual coupon, e.g. $5, with ct, where t is the period in which we get the coupon.
This document is 25 Exchange Credits
More about this document:
|
This document has been hand checkedEvery document on Thinkswap has been carefully hand checked to make sure it's correctly described and categorised. No more browsing through piles of irrelevant study resources. |
|
This is a Complete Set of Study NotesComplete Study Notes typically cover at least half a semester’s content or several topics in greater depth. They are typically greater than 20 pages in length and go into more detail when covering topics. |
|
What are Exchange Credits?Exchange Credits represent the worth of each document on Thinkswap. In exchange for uploading documents you will receive Exchange Credits. These credits can then be used to download other documents for free. |
|
Satisfaction GuaranteeWe want you to be satisfied with your learning, that’s why all documents on Thinkswap are covered by our Satisfaction Guarantee. If a document is not of an acceptable quality or the document was incorrectly described or categorised, we will provide a full refund of Exchange Credits so that you can get another document. For more information please read Thinkswap's Satisfaction Guarantee. |
Studying with Academic Integrity
Studying from past student work is an amazing way to learn and research, however you must always act with academic integrity.
This document is the prior work of another student. Thinkswap has partnered with Turnitin to ensure students cannot copy directly from our resources. Understand how to responsibly use this work by visiting ‘Using Thinkswap resources correctly’.