1
Q
Calculate sensitivity of a bonds price to changes in interest
A
dP / dQ < 0
2
Q
Calculate CPN
A
CPN –> P = c * FV / k
c = coupon rate –> annual rate
k = antal coupon payments per år
ZCPN –> P = FV / 1+y –> (FV / P)^1/n - 1
y = rate of YTM
3
Q
YC
A
C / P
4
Q
Coupon rate
A
CPN * Antal coupon rates betalningar per år / FV
5
Q
Price of the stock today?
A
P0 = (D1+P1)/(1+re)
d1 = expected dividend
p1 = price
Båda dessa är uncertain / unknown
6
Q
Total return R
A
d1+ p1 - p0 / p0 = R = re
7
Q
Dividend yield
A
D1 / P0
8
Q
Capital gain rate
A
P1 - P0 / P0
Financial Economics
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