LECTURE#3 FINANCIAL MANAGEMENT|| HOW TO EVALAUTE BOND VALUE|| ACCA, CA, CPA EXAM BEC| CMA EXAM

Описание: COURSE TITLE: FINANCIAL MANAGEMENT
CHAPTER#1 BOND VALUATION
LECTURE#3 HOW TO EVALAUTE BOND VALUE
In this lecture I shall discuss about
(1) What is bond value
(2) How to calculate bond value numerically
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Books that I am going to follow here are
(1) Principles of Managerial Finance written by International authors, Lawrence J. Gitman, Rogar Juchau and Jack Flanagan.
(2) Fundamentals of Financial Management by Van Horne's, John M. Wachowicz.
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In this session, I explain bond valuation. Bond valuation is a way to determine the theoretical fair value (or par value) of a particular bond. Bond valuation is the determination of the fair price of a bond. Corporate bond valuation is the process of determining a corporate bond’s fair value based on the present value of the bond’s coupon payments and the repayment of the principal.
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Course Contents of Financial Managements are
(1) Bond Valuation
(2)CAPITAL BUDGETING TECHNIQUES(CBT)
(3) CASH BUDGET
(4) CASH FLOW STATEMANT
(5) COST OF CAPITAL (COC)
(6) LEVERAGE
(7) RATIO ANALYSIS
(8) STOCK VALUATION
(9) TIME VALUE OF MONEY (TVM)
(10) WORKING CAPITAL MANAGEMENT (WCM)
(11) FINANCIAL MANAGEMENT PAST PAPERS
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KEY WORDS FOR LECTURE UNDERSTANDING:
Semi Annual quarterly compounding, Compounding frequency, Par values, Coupon Interest, Semi Annual, Interest Rate, dollar, Face Value of Bond, Coupon Rate, Yield to Maturity (YTM), Premium price, Premium value, Semi Annual Yield, Nominal Annual YTM, Time Value Money, Effective Annual Rate YTM, Maturity Value, Zero Coupon Bond, Dollar Intrinsic Value, Required Rate of Bond.
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In the world of finance, understanding the relationship between interest rates and bond valuation is absolutely crucial. Welcome to our channel, where we demystify complex financial concepts and make them accessible to everyone.

In this video, we delve into the fascinating realm of "Interest Rate and Bond Valuation." Whether you're a finance student, a budding investor, or just someone curious about the financial markets, this video is designed to provide you with valuable insights.

📈 Key Topics Covered:

Interest Rates Demystified: We start by breaking down the concept of interest rates. Learn about the different types of interest rates, including nominal and real interest rates, and discover how they impact the financial landscape.

Bond Basics: Get acquainted with the fundamental concepts of bonds, including what they are, how they work, and why they are a popular investment choice.

Bond Valuation Principles: Explore the intricate world of bond valuation. We'll explain how the price of a bond is determined in the market, taking into account factors such as interest rates, time to maturity, and bond coupons.

The Inverse Relationship: Discover the inverse relationship between interest rates and bond prices. As interest rates fluctuate, bond prices move in the opposite direction. We'll explain why this happens and what it means for investors.

Yield to Maturity (YTM): Learn about the crucial concept of Yield to Maturity and how it represents the total return an investor can expect from a bond investment.

Impact on Investment Decisions: Gain insights into how changes in interest rates affect investment decisions and bond portfolio management strategies.

Real-World Examples: We'll illustrate these concepts with real-world examples, making it easier for you to apply this knowledge in your financial journey.

By the end of this video, you'll have a solid grasp of interest rate dynamics and how they influence the valuation of bonds. Whether you're planning to invest in bonds, work in finance, or simply want to enhance your financial literacy, this video is your gateway to mastering this critical aspect of financial management.

If you find this video informative, don't forget to like, share, and subscribe to our channel for more valuable insights into the world of finance. Stay tuned for more educational content on financial management, investment strategies, and economic trends.

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