Patrick Casabona, Robert M. Traficanti

Investment Pricing Methods (eBook, PDF)

A Guide for Accounting and Financial Professionals

• Format: PDF

Produktbeschreibung

Practical, expert coverage of investment pricing methods for financial professionals This book on investment pricing methods offers accounting and financial practitioners and academics a solid understanding of the techniques and methods investment analysts use to price common financial investment instruments, such as commercial mortgages, private placement-bonds, mortgage-backed securities, private and public equities, derivatives, and joint ventures. Clarification of important terminology and an overview of fundamental concepts are provided for less experienced professionals, while in-depth and up-to-date discussion of technical matters offers experienced professionals expert dissection of more complex material. This authoritative and reliable guide features: * PowerPoint(TM) presentation for teaching purposes available online at www.wiley.com/go/investmentpricing * In-depth and up-to-date pricing models * Verbal and formula explanations for all mathematical equations * Tips on reviewing investment prices for accuracy or flaws * Investment type characteristics such as contractual provisions, cash flows, and risks for applying Statement 133 hedge effectiveness guidelines * Basic building blocks of investment pricing methodologies including present value methodologies used for pricing and evaluating common investment types * Coverage of complex issues including term structure of interest rates, determinants of bond yields and stock risk premiums, estimation of free cash flows for valuing a business entity, and more

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Produktdetails

• Verlag: John Wiley & Sons
• Seitenzahl: 384
• Erscheinungstermin: 1. Juli 2002
• Englisch
• ISBN-13: 9780471229483
• Artikelnr.: 37301629

Autorenporträt

PATRICK CASABONA, PhD, is Associate Professor in the Department of Accounting and Taxation at the Peter J. Tobin College of Business at St. John's University and a consultant to various business organizations. ROBERT M. TRAFICANTI is Director of Accounting Policy at a major investment bank. He coauthored this book while he was a project manager at the Financial Accounting Standards Board.

Inhaltsangabe

Preface.
Acknowledgments.
1 Pricing Concepts and the Term Structure of Interest Rates.
Introduction.
Present Value Formula.
Duration and Other Fixed-Income Pricing Concepts.
Concluding Remarks.
Notes.
Appendix A: Calculation of U.S. Treasury Bond Yield Curve.
Appendix B: Eurodollar Futures Yields.
2 Fixed-Income Pricing Matrix and Decomposing Yields.
Introduction.
Determining the Discount Rate.
Credit Rating Categories and Determination.
Processes for Decomposing Bond Yields.
Normalized-Yield Pricing Matrix.
Concluding Remarks.
Notes.
3 Public Corporate Bonds, Private-Placement Bonds, and Whole Commercial
Mortgages.
Introduction.
Key Terminology.
Publicly Issued Corporate Bonds.
Public Corporate Bond Pricing.
Private-Placement Bonds.
Valuing a Private-Placement Bond.
Pricing Bonds that Have Sinking-Fund Payment Requirements.
Pricing Defaulted Bonds.
Whole Commercial Mortgage Loans.
Valuing a Whole Commercial Mortgage Loan.
Monetary Default Scenarios.
Notes.
Appendix C: Bloomberg-Yield to Call Data.
Appendix D: Selected Portions of BondCalc (r) Brochures.
4 Mortgage-Backed and Asset-Backed Securities.
Introduction.
Evolution of the Mortgage-Backed Securities Market.
Mortgage-Backed Securities.
Collateralized Mortgage Obligations.
Bloomberg Median Prepayments.
Stripped Securities.
Private-Placement Asset-Backed Securities.
Concluding Remarks.
Notes.
5 Privately Held Equity.
Introduction.
Equity Volatility.
Pricing Equity Issues.
Common Equity Pricing Models Used by Investment Analysts.
Price-Multiple Equity Pricing Models.
Discounted Cash Flow Approach Equity Pricing Model.
Basic Framework of Private-Equity Investing.
Accountant's Review of Private-Equity Valuations.
Concluding Remarks.
Notes.
6 Public Equity Pricing.
Introduction.
"Fox Rocks" Valuation Illustration.
Discounted Cash Flow Model.
Concluding Remarks.
Notes.
Appendix E: "Fox Rocks" Valuation Illustration.
7 Derivatives.
Introduction.
Forward Contracts.
Futures Contracts.
Option Contracts.
Swaps.
Credit Derivatives.
Forward Rate Agreements.
Notes.
Appendix F: Using Pricing Concepts of Fixed-Income Investments and
Derivatives to Illustrate How to Hedge the Base Rate of Interest.
Appendix G: Fixed Income Option Strategies.
8 Partnerships.
Introduction.
Surfside Condominium Partnership.
Concluding Remarks.
Glossary.
References.
Index.