Valuation and Characteristics of Bonds

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.