Publications
Publications
- February 1991 (Revised November 1993)
Valuation and Discounted Cash Flows
Abstract
A set of five exercises in valuation of simple fixed income securities. No capital budgeting. Students use present value analysis to compute discounted cash flows. Situations/concepts covered include: future value; mortgage payment and repayment; calculating implicit interest rate on loan, yield to maturity on bond; bond pricing, to include rate sensitivity, Eurobonds, conversion of bond-equivalent yield to effective annual yield, and Japanese yields; growing versus fixed retirement annuities.
Keywords
Citation
"Valuation and Discounted Cash Flows." Harvard Business School Exercise 291-028, February 1991. (Revised November 1993.)