TYBAF SEM V SUB - FINANCIAL MGMT. & MCOM SEM II SUB-CORPORATE FIN., TOPIC - BOND VALUATION PART 8

Описание: #Redemption #Interest #Face
TOPIC - BOND VALUATION

TYBAF SEM V

SUB-FINANCIAL MANAGEMENT &
MCOM SEM II

SUB-CORPORATE FINANCE

Introduction of bond valuation part 1-
   • TYBAF SEM V SUB - FINANCIAL MGMT. & MCOM S...  

Basic terms of A bond /important factors in bond valuation

#Face value

#Interest rate / coupon rate

#Maturity period

#Redemption value or maturity value

#Market value

Illustration 8
A Bond of Rs. 100 face Value carrying an annual interest rate of 12% is redeemable after 6 years at Par
if the required rate of return is 15% what is the present value of bond and should the investors buy the bond
if the current market price of the bond if Rs. 90

this video helping students understand the concepts in bond and how to calculate the value of bond by using formula method!