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Bond valuation

Unit 5: Financial Assets ValuationTopic 2 of 5
Browse the Fundamentals of Financial Management syllabus

Fundamentals of Financial Management

10 units
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What the syllabus expects

  • Perpetual bonds
  • Zero-coupon bonds
  • Finite-maturity coupon bonds
  • Semiannual-interest valuation
  • Discount and premium bonds

Bond valuation

Bachelor of Business Studies (BBS) — Second Year

Subject: Fundamentals of Financial Management (MGT 215)

Unit 5: Financial Assets Valuation

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

  • Explain the scope and key elements of bond valuation.
  • Apply the relevant financial model, calculation or analytical approach and explain its assumptions and decision implications.

Curriculum Scope

  • Perpetual bonds
  • Zero-coupon bonds
  • Finite-maturity coupon bonds
  • Semiannual-interest valuation
  • Discount and premium bonds

Detailed Microsyllabus

  1. Bond cash flows

    1. Perpetual, zero-coupon and finite-maturity coupon bonds.
    2. Coupon payments and principal repayment.
    3. Valuation with matched discount periods.

  2. Bond-price analysis

    1. Semiannual coupon and rate adjustments.
    2. Discount, par and premium valuation.
    3. Explain price–yield relationships and assumption limits.

Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 41-43.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here.