CORPORATE FINANCE Corporate Finance Authors Note: 5-1 Bond Valuation with Annual Payments:.2 5-2 YTM for Annual Payments:.2 5-2 YTM for Annual Payments:.2 5-2 YTM for Annual Payments:.2 5-6 Yield to M

Running head: CORPORATE FINANCE
Corporate Finance
Name of the Student:
Name of the University:
Authors Note:

CORPORATE FINANCE
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Table of Contents
Chapter 5:...................................................................................................................................2
5-1 Bond Valuation with Annual Payments:.............................................................................2
5-2 YTM for Annual Payments:................................................................................................2
5-6 Maturity Risk Premium:......................................................................................................2
5-7 Bond Valuation with Semi-Annual Payments:....................................................................2
5-13 Yield to Maturity and Current Yield:................................................................................3
Chapter 7:...................................................................................................................................3
7-2 Constant Growth Valuation:................................................................................................3
7-4 Preferred Stock Valuation:...................................................................................................3
7-5 Non-constant Growth Valuation:.........................................................................................3
Bibliography:..............................................................................................................................5

CORPORATE FINANCE
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Chapter 5:
5-1 Bond Valuation with Annual Payments:
Bond Valuation with Annual Payments
Particulars Value
Time 12.00
Coupon rate 8.00%
YTM 9.00%
Par value $ 1,000.00
Market Price of the bond $ 928.39
5-2 YTM for Annual Payments:
YTM for Annual Payments
Particulars Value
Time 12.00
Coupon rate 10.00%
Par value $ 1,000.00
Market Price of the bond $ 850.00
YTM 12.48%
5-6 Maturity Risk Premium:
Maturity Risk Premium
Particulars Value
Risk free rate 3.00%
Inflation 3.00%
Yield of treasury 6.30%
Maturity risk premium 0.30%
5-7 Bond Valuation with Semi-Annual Payments:
Bond Valuation with Semi-Annual Payments
Particulars Value
Time 8.00
T 16.00
Coupon rate 10.00%
C 5.00%
Yield to maturity 8.50%
YTM 4.25%
Par value $ 1,000.00