Bond yields

Bond yields

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 yields.
• Apply the relevant financial model, calculation or analytical approach and explain its assumptions and decision implications.

Curriculum Scope

• Current yield
• Capital-gain yield
• Holding-period return
• Yield to maturity
• Yield to call

Detailed Microsyllabus

1. Income and price returns

   1. Current yield from coupon income.
   2. Capital-gain yield from price changes.
   3. Holding-period return including income and price change.

2. Maturity and call yields

   1. Yield to maturity from contractual cash flows.
   2. Yield to call from a stated call date and amount.
   3. Interpret reinvestment, holding and contractual assumptions.

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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.