| Chapter Outline (See related pages)
Interest Rates as a Determinant of Financial Security Values: Chapter Overview
Various Interest Rate Measures
Coupon Rate
Required Rate of Return
Expected Rate of Return
Required versus Expected Rates of Return: The Role of Efficient Markets
Realized Rate of Return
Bond Valuation
Bond Valuation Formula Used to Calculate Fair Present Values
Bond Valuation Formula Used to Calculate Yield to Maturity
Equity Valuation
Zero Growth in Dividends
Constant Growth in Dividends
Supernormal (or Nonconstant) Growth in Dividends
Impact of Interest Rate Changes on Security Values
Impact of Maturity on Security Values
Maturity and Security Prices
Maturity and Security Price
Sensitivity to Changes in Interest Rates
Impact of Coupon Rates on Security Values
Coupon Rate and Security Price
Coupon Rate and Security Price
Sensitivity to Changes in Interest Rates
Duration
A Simple Illustration of Duration
A General Formula for Duration
Features of Duration
Economic Meaning of Duration
Large Interest Rate Changes and Duration
Appendix 3A: Duration and Immunization (at www.mhhe.com/sc4e)
Appendix 3B: More on Convexity (at www.mhhe.com/sc4e)
|
|