Chapter 5 Valuation of Bond

Learning Objectives：

After studying this chapter, you should be able to：

·Distinguish different types of bonds.

·Understand the factors that affect the bond value.

·Apply appropriate valuation methods to value bonds.

估值是财务管理领域中关键部分，在资产买/卖、并购、重组、清算等活动中都起着重要作用。

Valuation is considered as one of the most critical areas in finance; it plays a key role in many areas of finance such as buy/sell, solvency, merger and acquisition. For example, prospective investors should know how to determine the price of a security because it will indicate the yield received should the investment be made. Likewise, if a company wants to raise capital by issuing security, it has to know how to price the security correctly. In this and the following chapter, we roughly group securities into bonds and shares, both of which are the most common financial instruments in capital market, and we will run through some securities price calculations for various types of bonds and shares.

对任何证券或资产的估值，其最基本的概念：资产（或证券）的价值等于该资产或证券所产生的所有未来现金流的现值之和。

As with any securities or capital investment, the fundamental concept of valuation is that the value of a security is the sum of present value of all the forecast cash flows generated from the security. This concept applies to all models throughout the book. These intrinsic or fair value obtained by the valuation model provide the base that the price of securities fluctuate around, thus give buyer/seller indication on decision making.