IV: Interest Rates, Valuation, and Return
- Page ID
- 88621
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)- 12: Fixed Income Valuation
- 12.1: Chapter Twelve- Learning Outcomes
- 12.2: Security Return- The Holding Pattern Return (Raw Calculation)
- 12.3: Valuation Premise
- 12.4: Fixed Income Securities- Bond Components and Valuation Formula
- 12.5: Fixed Income Securities- Dollar Price and Yield-to-Maturity
- 12.6: Bond Dollar Prices- Discount, Par, and Premium
- 12.7: The True Price of a Bond
- 13: Interest Rates
- 13.1: Chapter Thirteen- Learning Outcomes
- 13.2: Interest Rates- Returns to Investors; Cost to the Corporation
- 13.3: Inside the Banker’s Brain
- 13.4: Fixed Income Risks
- 13.5: Interest Rate and Reinvestment Rate Risks
- 13.6: Credit Ratings
- 13.7: The Yield Curve
- 13.8: The Term Structure of Interest Rates- Four Yield Curve Theories
- 13.9: Credit Spreads
- 13.10: High Yield Securities- Junk Bonds and Other Speculative Securities
- 13.11: Summary- Interest Rates, the Corporation, and Financial Markets
- 14: Equity Valuation and Return Measurement
- 14.1: Chapter Fourteen- Learning Outcomes
- 14.2: The Philosophy of Equity Valuation
- 14.3: Equity Valuation
- 14.4: The Dividend Discount Model (DDM)- Fixed Dividend or No- Growth Version
- 14.5: The Dividend Discount Model (DDM)- Constant Growth Version
- 14.6: Dividend Discount Model (DDM) (Problems)
- 14.7: Dividend Discount Model (Solutions)
- 14.8: What About Quarterly Dividends?
- 14.9: Components of the Dividend Discount Model
- 14.10: A Closer Look at Dividend Growth
- 14.11: Summary of DDM Variables' Sources
- 14.12: Value Prediction Problem
- 14.13: A Qualitative Look at The Discount Rate
- 14.14: Business Ethics - The Small Investor's Experience of Insider Trading
- 14.15: Capital Gains
- 14.16: Portfolio Return (Weighted Averages)
- 14.17: The Geometric Average Return- Multi-year Returns
- 14.18: Chapters 12-14- Review Questions