Research work · 2014

Bond valuation theory

Martin Krchňavý

Digital Repository (National Repository of Grey Literature)

Abstract

The bachelor thesis discusses the theory of bond valuation with a focus on traditional coupon and zero-coupon bonds without embedded options. Introduction specifies author's objectives and methods, which are used to fulfil these objectives. Theoretical part explains the concept of bond and analyses its individual attributes, such as price, yield and risk. The part with the practical application of the theory contains the description of data obtained from Thomson Reuters Eikon trading platform followed by the demonstration of yield and risk measurements and the valuation of my exemplary bond, which is Czech sovereign bond with a fixed coupon rate issued in the national currency. Conclusion evaluates the achievement of objectives and the potential utilization of results in praxis.