... payments
First, divide the annual coupon by two
Second, divide the annual discount rate by two
Third, double the number of years
n
k
C
k
C
k
C
PV
221
)2/1(
Par2/
)2/1(
2/
)2/1(
2/
bond of
+
+
+
+
+
+
=
... par
value, a 9 percent coupon rate, and a 10 percent yield to
maturity. What is the duration of this bond?
years92.1
)10.1(
090,1$
)10.1(
90$
)10.1(
)2(090,1$
)10.1(
90$
)1(
)1(
)(
DUR
21
21
1
1
=
+
+
=
+
+
=
∑
∑
=
=
n
t
t
t
n
t
t
t
k
C
k
tC
...
... năng thứ 2 của tài sản tài chính.
III. THỊTRƯỜNGTÀI CHÍNH:
1. Khái niệm về thịtrường
Thị trườngtàichính thể hiện rất nhạy cảm mọi hoạt động của cácthịtrường
hàng hoá và dịch vụ. Nó ... thể rút ra được khái niệm về thị tr
ường tài chính:
Thị trườngtàichính là nơi diễn ra các hoạt động mua bán cáctài sản tài chính.
• Đối tượng của thịtrườngtài chính: là những nguồn cung ... nơi thi u,
chủ
yếu diễn ra trên thịtrườngtài chính. Thuật ngữ thịtrườngtàichính được sử
dụng để phân biệt thịtrường mua bán, giao dịch các loại chứng khoán (tài sản tài
chính) với các...
... managers believe their stock is undervalued
in the market, they may take actions to
capitalize on this discrepancy
Stock repurchases
Use excess cash to purchase shares in the market at
a low ... firm from auditing a client whose
CEO, CFO, or other employees are employed by the client
firm within one year prior to the audit
28
Investor Participation in the
Secondary Market (cont’d)
How...
... Securities Act of 1933 and the Securities Exchange Act of
1934 were enacted to prevent unfair or unethical trading
practices on the security exchanges
The NYSE:
States that every transaction...
... yield on newly issued T-bonds is commonly used as a proxy
for the risk-free rate
The terms within the parentheses measure the market risk
premium
Historical data over 30 or more years can...
...
payments for floating-rate payments that are capped
The floating-rate payer pays an up-front fee for this feature
The fixed-rate payer may allow the cap if it believes interest rates
will not exceed...
...
currency for a specified price within a specified period of time
A currency put option provides the right to sell a specified currency
for a specified price within a specified period of time
Corporations ... reporting
Reporting option compensation as an expense
The FASB has been unwilling to require firms to report this
expense on the income statement
Earnings will appear higher when a firm uses stock options ... futures contract allows the right
to purchase or sell that futures contract for a
specified price within a specified period of time
Options on futures grant the power to take the futures
position...
... date
Available for various stock indexes (see next slide)
Have four settlement dates on the third Friday in March, June,
September, and December
The securities underlying the stock index ...
date, the T-bill futures contract has a price of 93.50.
What is the investor’s nominal profit from this strategy?
000,7$000,935$000,942$Profit =−=
30
Stock Index Futures (cont’d)
Type of Stock Index ... futures contract specifies 93–
14 of the par value as the price. What is the nominal
profit from this futures transaction?
50.062,3$00.375,90$50.437,93$Profit =−=
27
Hedging with Interest Rate...
... (ERISA)
100 percent vesting after five years, or
Graded vesting, with 20 percent vesting in the third year, 40
percent in the fourth, 60 percent in the fifth, 80 percent in the sixth,
and 100 ... performance
Companies can diversify the age distribution of their
customer base to reduce the exposure to this risk
If the customer base is concentrated in the older age
group, life insurance companies...
... to the securities
firm
Analysts cannot be supervised by the investment banking
department within the securities firm
An analyst rating must divulge any recent investment banking
business...
... stocks
26
Bond Fund Categories (cont’d)
High-yield (junk) bond funds consist of at least two-
thirds of bonds rated below Baa by Moody’s or BBB by
S&P
International and global bond funds
International...
... the institution cannot control
Finance companies need skilled managers to analyze the
creditworthiness of borrowers and assess how future economic
conditions may affect their ability to repay...