Valuation and Characteristics of Bonds
June 5th, 2022
Critical Thinking
Attached Files:
- SEU_FIN500_Assignment_Mod09.docx (14.632 KB)
Valuation and Characteristics of Bonds (110 points)
Complete the following problems:
- Problem 9.1: Bond Valuation
- Problem 9.2: Yield to Maturity
- Problem 9.3: Current Yield
- Problem 9.4: Bond Valuation w/Zero Coupon Payment
- Problem 9:5: Bondholder’s Expected Rate of Return
Complete the problems in an Excel spreadsheet. Be sure to show all your work on the Excel spreadsheet to receive credit; no hard keys.
Required
- Chapter 7 in Foundations of Finance – The Valuation and Characteristics of Bonds
- Abdul Halim, Z., How, J., Verhoeven, P., & Hassan, M. K. (2019). The value of certification in Islamic bond offerings. Journal of Corporate Finance, 55, 141-161.
- Hamza, H., & Saadaoui, Z. (2018). Monetary transmission through the debt financing channel of Islamic banks: Does PSIA play a role? Research in International Business and Finance, 45, 557-570.
Recommended
- Chapter 7 PowerPoint slides in Foundations of Finance – The Valuation and Characteristics of Bonds
- Šeho, M., Bacha, O. I., & Smolo, E. (2020). The effects of interest rate on Islamic bank financing instruments: Cross-country evidence from dual-banking systems. Pacific Basin Finance Journal, in press.