elASSMAte

Date
Pag2
6o9/22
Chartin-3 BOND VA LUATION
To he borrower
med unceme Ansiruumnt iiphuserlerg a leam nade ky an invwestor
msbuumunt Lsed ky Coporaits K4cummnt lany level) u
AdiMAlong term kund
Boad heiders dve reditors o t ewners
heturi aA {tced &asHd
Elexi eMds ntenii ekaneeas dper maAket
Lemyanms uki Cemiinat of dibt {equity a apetal
RMed tor
Bonds_usmally Hamd by 2tVt,uually backed orsecund, leng period(
Debenture : wually aaused y pmal Corpesalas Mot lackd ky
Aoliateral e Alady i lessOLC yeu Aill l in dfaulter ),
hughes Ms hince huher mturn ucd f 13 uis

fnancial omakkt; SEBIfasled toeducale ktizons.

o &z lmie lo bond
Bonds e kraded un 2 makkik, Steck. Echamg markRit
Forignv nvesias_ae aPvea To {Uithas Aoerds n ndiaw
bond nahkit
2020- budgat - JoAeig tnvestors-uly OccessH AAUte

AoR-a d Deiect chume

Ruasen RBI e s 10 yeass Gol ren eld & .327 len)
Continueschamap_UM iust rate u Keodasng o hange
m

Lot qy leends&w wuaglys Aulaung

I00 s a Mule, 90-10Aul d': 23, 23n dtlt
J00-83,T, meauuy
PAepest m dulst alloeath Shouid 1c R Jse or equl as
tuky MeTe uky Tlaw dibk
Masala Bend ud y Gout ukidi Sndia tenAtdnomUmald
Am ndam Rupe
 elASSMAte
miiet rat y loupen rat hL ate-
mtnut u Coup6m

gDVE Kisala wonm lo assmue 1oo m asala l5tna p

s at an inteust Aali f 27
ABALA_ at pai vaue, thaded at_ dscoul ot piUM

acepas Value- 0o0

Loupon Yal -12 (120/10)10
/20 (p awum
Peptnyieid 1Cushen eld
=

=lpok
k/2
Matusuty30 YYs
YLUA o matvity (YTM) ttal Teuutk obbausd ron bend

wwwwt RR =6.37
RBAeduces Apo rate bend c Yv p
BBL ALduuces intrest rake llndima)knn _nuuw bera Leuer
mkiast roti vice Vessa
&nplat mterest Psiw l, Yicd
Fos_cida_konds_Remand Mill fe die lomehuch_piAc
_ersluay bendi snll go up (as st hao haglhea ntrest
Kate thai ni) kenda) hiu a poumt hat pte u so
hMAAchuat maMOLAO IS aenli stap kauyprn
i2 00
Mosola Bomds u _PAMce
CY2 Cuwrem eld =/20 /1 2.00 =\o'/ .
Yiil douwn lo10 7 r o n / 2 Tuh i c e s e s
2010
2 0

000
Tkice -
tld ateret rale

CNBC Juauy yuldi sl as wegCOVS dlgegt veceut 0.S ntfat

data People uil expect ederal stve h Atdue
Lntwst ate.
J ,nlud bend esima bends
Anttat"J, tuut wwenTatu abrate
hhei Puee(ku te
ney devand
Yeld tse
 Caupen hate-kixed p.a. Aluim for ss yenj

Ats n , fr
entire percd
Y TM- # Total Valuu

Band lalurluen
wilust payhie
natilse o Casl.fiv has a matuicby pesed ra psu
. tr:eITY
Lupev Paynin Pas Valne at end =YTM
Cconsdeisti me Value
Capii Gens
mnty)
priy ef bond can
Chan)
Valuerancial siewis: PV /_eapeelu u
lash Prw
hus tu humaiy pnye

tF
bend vauu= L
Berd (+R (ItR
Valu
B e d Vaue= iesCut
tlu face amount,
(makulpriee
f the b@nd)
MAnclto COmpare R YTM Of beNd

bena pay sLAnNmnmaly

Coupen xpred mDec 23

bena s u d hith 6 3/S
hc aluu l 0 0 0
ab {De 3) f
Lnpom_p mim aAl muAnaly (Jue

31 8 75.
Stmianual pouyv
h &ze mu nj ti Cash Leno
On Janl_ 201
375 31S7S 1031 875
2- Dec 31,23
uAualy amnuaA

On JamI2O9 Ahu hespumd uld o S/., ohat shonld he

PV 31-875 4O00 D60-[

1t0.0 o 7 1.025)°
1.025)
Luisent valne 0.05/2
NFER
Valuu
2s

T
8 0822
diyeunt wuci u hulus YTM A Cospen.
Bond YTM leupe
a0 YTM= Ccupou taptal awm
Mawrly : 25y Ajter 5 yrs= g 0 O e p e n - 1 2

(Curretþriu)
tace ICCo. Fi YTM
YTM 20 + ArO 320
t r Sys prenuuum then'-'

m Thuuu n asuypl"at bend t hetd Lll matunt

ducennt, YTM Ccu we apetai Gan

pemuum, YTM<oupon, -Veapetal qaus

uded ar, Y7M= Ccpon
te matu
tond Cove vcUnilg (ctoaue )

hot aturd bne

fav
Dis c&ut rati
Note Fon US bond aum fIO0
uomruin

a t u v i t s 6 y r , Coupen ral 8 7 , FV= 1000, pri@-955 4

yTM : ? niu y TM A > Coupon
YTM upon dui lo cduCount
y R 3 , try P= 10/, to get ps veu = aG5 I4
000
bond.value:862 _, t 6

0.8 - q12 89
d O m t rat K10*/ o *t 955 14
R-9 C 87 ((ooo)
bend t l000 280
value 0.09 109 /096

S14

YTM 9 7. Cwwwnb wd 3 0 8.387

55.14
YTM Cmmdum_couupen o0pup qam

p o n rate 4.25 / 0D of bend puuchasmd

4yYs yTM = O.15 7 vaur of bond ?

PV= 25 425+ 4.255

3
HA.25
: 0015 10015 0015 1.0 0151
1634

PV (btnd) =pv (annuty o opans) *_PV (UMpal)

Pv Cbond) cpn xPVAV T nal paymLntX duscout fator

4 25 X
Lo.0015 0.0015(+0.0015) 100
1 0 0

4.25(FV
6 34. 4.25 n
hun

aca vau
ntae valuu
015 T
PVz (YTM r ! Natuly iod, tnni , , o)
 dake Pv cvo
always ollhetwise enei uull Com
ve

datu gun
Costdn
Rate ) fov YTM pmt hace X Couptn Valee
pincl () fos Lunent
puc
yatd) topule YTM dales ast quu
Cewer
Yalee PV ) act yyS auuUn fos Cunit se pmCe
19108p2
Malul &Bond Pae Valalilut
rnd
Value
Onndev 2 ohorusse idontical bends.
Jhe Leng- auwuty bend ull houe muh
moro volatuty wulh nispect do Change
Iin hu dscount ra
as Ahortalyruly
Period

ducotunt
ratu
eng
maturiaPenod
Fv 1000, YTM=4, Maturty tyrs -
2
CoupemPrio
3 131:98 34 30 10300
90 90 1090
3' 1300.10
whueh loemd taks mota timw w kyay Zu paymeut)

omatunily
m_YTM
Thvro L IZ change
Coupon price4/n)_pricels/ym) °hamgt
939.18 L000 t6.47 more Chamne
1 73.8 +51
1300.10 Jwwg
Catuutrt
ash ftous
 Aeage Aue Cash flouo ilatd in Stne way ulh Antust
qa edUPATI ÓN) 'or Maiaulay Duraltn Pruce
A Leng malusdu bed > quli moe afecl4 More Valatult.

Weqhted Auwagu o thu um st to each af ahe Ccash paymenls

Weght fot each yea PvG cagh flews
Pv.c thu ben
Tabl 3. 4 Ctertbeok)
Cepon= 4J., FV 1000 Maturit TYTM 4
ounat"=?
alcutate Cash fie fn each 7C1oo) 90
Y
2 3 5 7
ashftau 10 0
90 90
PV ofcashflow 1.04 T042
Pv CCi) 8654 83.2) 80 -01 76 93 73.93 13 828.31 PV:1B00.1
racth on 86.54
total valué 300.
PvCc
0 64 06 0-0615 0.D592 0.056 0.0541 0637
PV 0.O666
Year x fracth
tx PvCCi) 0-066G D.1280 01846 0.2367 O284 0.3283 4 4TG e
Pv fotal durat = 5.69 yrs

rpected ulutn means YTM Ony

Cpupen 3 ° / . , EVe |000, Malwuly 7 VTM 4 / .
ter Soluun
dwaluen 637yrs
(6.4'/) Cbend pioims encat
A63 7 yrs
5.69 y 3S (s./)
how muk bond fuee wil Chang hvu u a Chae of 17 en

yTM
 Dete
poue

Medfud dunaluenw yelatilky

Veauuy A = E A- 6./. B5.41°/
Beta (631 1.oh) (56944
Mow much j'/ chamaAM maukut mdix Auads lo Chary
Zock HHuCU

usk eun b nut vn huh beta

1 must m hugh vaiatilits bene
Cchamt fmu)
EpeyTM Stocknu, reuanee mauny Voaiule
strck Ance

Hw Calcutal_for 3'/, YTM 25/. YTM

Term stTuclure lnterest Rates (Pq-58)
 elASSMATe

Date
Page

RLai Namnal Kates al iant vest

Reat Anterest2lt nemunalrale

t mtation ral

Rik a Dekautt Defaut (rdit rock

raupaumuum
Rusk vestment-qrade bon
Junk bonds
&ystemate wsystematiu rsK
(euuybeAy an systm JetAirmans, Ves Bank, PayTM,Sri Lanna bonds,VI
l t afette) firm Apecifc
txpetratprittsruauk - -
mi'smanagememt tvnal u , ma NpamE D
Grieu, pomdtmie
- amtlruen
-

f yen tan nvegtiA hanyen wit

sufer
Cleadto hyhinterestrate
FULAm bonáPkic
spena more on consumpf"
almdluyA On inYestmelk
-&mtjeresrrai
-GDP
-Betaik d t omeaun
Stsemtie husk

Cumtrys kend always sater than Corporale lsemd lkut w ll

werelum
CRISIL redit Yaug Agnuy _ Irdna
A . HAAALA tBB6 BB, B
ureditwort,
thometsfAittlt
over IB)

N t m u n a l = ( 1 . 0 4 7 4 X1.07) - 1 |
29 al_mterest 10-
105 12.017
4.26 7
 Lhaptn-03
1. a des ngt changeunhl malusnly
. Pruce salls
Yield tus

. hnghin Tham sth YTM, Khin li Coupn

abemds toupon ate s
PaanA LIsedsthe coupen paymint s a {aL YAUM Ltnd
Mh he anne malusuly li.e.,akond hse_CoupGn_HAR
eaual To a YTM ) So investors ill pay a iLunun f h
Kerd lavhis he psumuun is khu_ prlpnt value f thu Vceupon shau oe hug
W COpm paymnls) heuhull le kewAs.pAACeat malumiy henetotomgina
b.4bgndicoupon halu As leures tham ik YTM, Ahm

yauve bend mith hu Same malunly lie. a kend hebose

COupon Hate i taual lo u YTM). So Anmuslösu nulldumand n
Ais tount dn thu bend lehtu thu disteunt à th iusnt ralue
t h u dkrunne An hu ceupen aymenta)
U

FISHERTHEORy
shess hey Kau hat a thang un Amaluon kal Causs
a chamge in thu Demunal luR 1atu, ko_khat Aha real
nlinut Talu at nafedd
 ater tax ralu Y7T (I-tax 2).

KnoCoupon Bonds
alnmays Kud at dauntt .e. bisw pal vaiue
n o coupon payment auocuated (no puuedu peymint
uetutn u dff w pas ducount valv
mdims Calld UMu

Koaztasw
TIPS
JLasy ut? - pr ste lud ecwiliu

Aud by Us Gout
nemnal HLhins Aull qet adyisted to provideaKmdlas r
hagha CP-Cersuumer Piice lndex lnlaT
Cri
Punchauny pones ALnains 8ame kun ater charge
whu dp we 9taud?
3 -Snfrastructure Jnnovalion, 9nvestmut -Govt. 8 Encousaz
bical duiut Expenseskimunue
Natiomal Bmtrastruduu Ipelinu (IL Cr
frem Debt Mkb

Pran placumentormaty & umutid HN nvetued

10/. equby)
a x lbinekiz m ntiresi COmponent FDL( morethn
tou lostfalio9mMestmenl (EPD Xny ternn propcl (AnyYa Yelatid

Beud ETF mday iE (NIFTY, Seusn)

nternatieual ETF NETE) Psv
Pjcet
um ndm,lula
Peykrun)
investmua Trut) 50
In Ts (nfrastrucrre
REL TS(Real tstate mmugnmint T5uot (uies Ly
weor i u luy ham hbogsy-REII
t
Apengli + pay 8u plew)
luwidsds
 NBFC
Anku qau loans lo NBFCs fon xhoni terv

Knafuinw Cosu
lA wer Auste , toer
Alam
C. Pietit os8vnkin tuund olso 9eu m
up,
to
Adai wnts To weot Vi & NOTY) in

wer
de not sund
-etve Cenamt Cendit S madi oy mvialeTs heAl
m vetf m
komds
-Vd CEvMam
beeks ,aukit -

o casl to haiholdeas
Cpon Mil uduCL Mo_diuidenolo
(ottuna
t haiheldery
ao tis Ao add" Cest Ptfov usoun, bond
hotde atiooar W t
bena be comAs
gater)
mterest rali 1 00A fo
Amueston

n0 o Ceupon bod nu
to be Md
153-15f 50000000
000 50,000
15 PV 000
t037540
224.
0 50M 2/8,0l6
copo lbomds 221.24
(3)Vauluuu of Aoupon bomd at:50,0va x1O 50 M
maturh4 21 8016 O0O
Vatu o o toupon benA 218016 x1O00