Visual Aid - 30: Valuation of Fixed Income Securities
Valuation of Fixed Income Securities
o Preference shares
o Convertible debentures
o Non-convertible debentures
o SEBI guidelines
o Government securities
o Yield to maturity
o Credit Ratings
o Liquidity Preference Theory
o Determinants of Interest RateFaculty may refer to the Reading Material in Learning Unit 4 for information on the
above topics for presentation
Visual Aid - 31 - Valuation of bonds and stocks
Valuation of bonds & stocks
- Classification of bonds: based on return and risk
- Sinking funds
- Bond yields:
o yield to maturity
o yield to call
o current yield - Interest rate risk
- Reinvestment Rate risk
- Basis for bond ratings
- Stocks and their valuation
- Common stock market and valuation
- Dividend growth models
- Efficient markets hypothesis
Faculty may refer to the Reading Material in Learning Unit 4 for information on the
above topics for presentation