sesi 1 manajemen keuangan 2 kkg revisi
TRANSCRIPT
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
1/26
Menejemen Keuangan II/M 1
Minggu I Page 1
MINGGU 1MANAJEMEN KEUANGAN 2MANAJEMEN KEUANGAN 2
Pokok Bahasan:
Interest rate or require return
!ujuan Instruksiona" Khusus:Agar mahasis#a a$at mengerti an memahami
Interest rate or require return%e&erensi:
1' Gitman( )a#ren*e J'( +2,11-(Principles ofManagerial Finance,1,the'( Aison.es"e0 ortuent' +ha$ 3-
2' Bear"e0 4 M0ers( +2,,5-(Principles of CorporateFinance,6the' M*ra# 7i"" In*' +ha$ 245-
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
2/26
Menejemen Keuangan II/M 1
Minggu I Page 2
Interest Rates & Required Returns
The interest rate or required return represents
the price of money.
Interest rates act as a regulating device that
controls the flow of money between suppliers
and demanders of funds.
The Board of Governors of the Federal Reserve
Systemregularly asses economic conditions and,
when necessary, initiate actions to change
interest rates to control inflation and economic
growth.
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
3/26
Menejemen Keuangan II/M 1
Minggu I Page 3
Interest Rates & Required Returns
Interest rates represent the compensation that a
demander of funds must pay a supplier.
When funds are lent, the cost of borrowing is theinterest rate.
When funds are raised by issuing stocks or
bonds, the cost the company must pay is called
the required return, which reflects the suppliersexpected level of return.
Interest Rate undamentals
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
4/26
Menejemen Keuangan II/M 1
Minggu I Page 4
Interest Rates & Required Returns
The real interest rate is the rate that creates an
equilibrium between the supply of savings and the
demand for investment funds in a perfect world.
In this contet, a perfect world is one in which there is
no inflation, where suppliers and demanders have no
liquidity preference, and where all outcomes are
certain.
The supply-demand relationship that determines thereal rate is shown in the graph on the following slide.
!he Real Rate of Interest
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
5/26
Menejemen Keuangan II/M 1
Minggu I Page 5
Interest Rates & Required Returns
Ignoring risk factors, the cost of funds is closely
tied to inflationary expectations.
!he risk"free rate of interest, R, which is typicallymeasured by a #"month $.%. !reasury bill &!"bill'
compensates investors only for the real rate of
return andfor the expected rate of inflation.
!he relationship between the annual rate ofinflation and the return on !"bills is shown on the
following slide.
Inflation and the (ost of )oney
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
6/26
Menejemen Keuangan II/M 1
Minggu I Page 6
Interest Rates & Required Returns
The nominal rate of interestis the actual rate of interest
charged by the supplier of funds and paid by the
demander. The nominal rate differs from the real rate of interest,
!" as a result of two factors#
Inflationary epectations reflected in an inflation
premium $I%, and
Issuer and issue characteristics such as default ris!s
and contractual provisions as reflected in a ris!
premium $R%.
'ominal or (ctual Rate of Interest $Return
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
7/26
Menejemen Keuangan II/M 1
Minggu I Page 7
Interest Rates & Required Returns
)sing this notation, the nominal rate of interest for
security *, !*is given in equation +.*, and is further
defined in equations +. and +.-.
'ominal or (ctual Rate of Interest $Return
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
8/26
Menejemen Keuangan II/M 1
Minggu I Page 8
Interest Rates & Required Returns
The term structure of interest rates relates the interest
rate to the time to maturity for securities with a commondefault ris! profile.
Typically, treasury securities are used to construct yield
curvessince all have ero ris! of default.
/owever, yield curves could also be constructed with((( or BBB corporate bonds or other types of similar
ris! securities.
!erm %tructure of Interest Rates
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
9/26
Menejemen Keuangan II/M 1
Minggu I Page
Theories of Term 0tructure
!his theory suggest that the shape of the yield curve
reflects investors expectations about the future
direction of inflation and interest rates.
!herefore, an upward"sloping yield curve reflects
expectations of higher future inflation and interest
rates. In general, the very strong relationship between
inflation and interest rates supports this theory.
*xpectations !heory
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
10/26
Menejemen Keuangan II/M 1
Minggu I Page 1!
Theories of Term 0tructure
This theory contends that long term interest rates tend
to be higher than short term rates for two reasons#
+ long1term securities are perceived to be ris!ier than
short1term securities
+ borrowers are generally willing to pay more for
long1term funds because they can loc! in at a rate
for a longer period of time and avoid the need to rollover the debt.
iquidity -reference !heory
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
11/26
Menejemen Keuangan II/M 1
Minggu I Page 11
Theories of Term 0tructure
!his theory suggests that the market for debt at
any point in time is segmented on the basis of
maturity.
s a result, the shape of the yield curve will
depend on the supply and demand for a givenmaturity at a given point in time.
)arket %egmentation !heory
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
12/26
Menejemen Keuangan II/M 1
Minggu I Page 12
2orporate Bonds
( bond is a long1term debt instrument that pays the
bondholder a specified amount of periodic interest rate
over a specified period of time.
The bond3s principal is the amount borrowed by the
company and the amount owed to the bond holder on
the maturity date.
The bond3s maturity date is the time at which a bond
becomes due and the principal must be repaid.
The bond3s coupon rateis the specified interest rate $or 4amount that must be periodically paid.
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
13/26
Menejemen Keuangan II/M 1
Minggu I Page 13
2orporate Bonds
!he bond/s current yield is the annual interest&income' divided by the current price of the security.
!he bond/s yield-to-maturity is the yield &expressed
as a compound rate of return' earned on a bond from
the time it is acquired until the maturity date of the
bond.
yield curve graphically shows the relationship
between the time to maturity and yields for debt in agiven risk class.
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
14/26
Menejemen Keuangan II/M 1
Minggu I Page 14
2orporate Bonds
In general, the longer the bonds maturity, the higher the
interest rate $or cost to the firm.
In addition, the larger the sizeof the offering, the lower
will be the cost $in 5 terms of the bond.
(lso, the greater the risk of the issuing firm, the higher
the cost of the issue.
6inally, the cost of money in the capital mar!et is thebasis form determining a bond3s coupon interest rate.
(ost of 0onds to the Issuer
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
15/26
Menejemen Keuangan II/M 1
Minggu I Page 15
2orporate Bonds
The conversion feature of convertible bonds allows
bondholders to echange their bonds for a specified
number of shares of common stoc!.
Bondholders will eercise this option only when the
mar!et price of the stoc! is greater than the conversion
price.
( call feature, which is included in most corporate
issues, gives the issuer the opportunity to repurchase the
bond prior to maturity at the call price.
1eneral eatures
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
16/26
Menejemen Keuangan II/M 1
Minggu I Page 16
2orporate Bonds
In general, the call premiumis equal to one year of
coupon interest and compensates the holder for
having it called prior to maturity.
urthermore, issuers will exercise the call feature
when interest rates fall and the issuer can
refund the issue at a lower cost.
Issuers typically must pay a higher rate to investorsfor the call feature compared to issues without the
feature.
1eneral eatures
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
17/26
Menejemen Keuangan II/M 1
Minggu I Page 17
2orporate Bonds
Bonds also are occasionally issued with stock purchase
warrantsattached to them to ma!e them more attractive
to investors.
7arrants give the bondholder the right to purchase acertain number of shares of the same firm3s common
stoc! at a specified price during a specified period of
time.
Including warrants typically allows the firm to raise debtcapital at a lower cost than would be possible in their
absence.
1eneral eatures
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
18/26
Menejemen Keuangan II/M 1
Minggu I Page 18
2orporate Bonds
2ompanies and governments borrow internationally
by issuing bonds in the Eurobond mar!et and the
foreign bond mar!et.
(Eurobondis issued by an international borrower and
sold to investors in countries with currencies other
than the currency in which the bond is
denominated.
In contrast, aforeign bondis issued in a host country3s
financial mar!et, in the host country3s currency,
by a foreign borrower.
International 0ond Issues
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
19/26
Menejemen Keuangan II/M 1
Minggu I Page 1
8aluation 6undamentals
The market! valueof any investment asset is simply the
present valueof epected cash flows.
The interest rate that these cash flows are discounted at
is called the asset3s required return. The required return is a function of the epected rate of
inflationand the perceived riskof the asset.
/igher perceived ris! results in a higher required
return and lower asset mar!et values.
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
20/26
Menejemen Keuangan II/M 1
Minggu I Page 2!
Basic 8aluation 9odel
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
21/26
Menejemen Keuangan II/M 1
Minggu I Page 21
Bonds with 9aturity :ates
6or eample, find the price of a *;5 coupon bond with
three years to maturity if mar!et interest rates are
currently *;5.
B; < 4*;; = 4*;; = $4*;; = 4*,;;;
$*=.*;* $*=.*; $*=.*;-
(nnual 2ompounding
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
22/26
Minggu I Page 22
2oupon >ffects on %rice 8olatility
The amount of bond price volatility depends on threebasic factors#
+ length of time to maturity
+ ris!
+ amount of coupon interest paid by the bond
6irst, we already have seen that the longer the term to
maturity, the greater is a bond3s volatility
0econd, the ris!ier a bond, the more variable therequired return will be, resulting in greater price
volatility.
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
23/26
Menejemen Keuangan II/M 1
Minggu I Page 23
6inally, the amount of coupon interest also impacts a
bond3s price volatility.
0pecifically, the lower the coupon, the greater will be the
bond3s volatility, because it will be longer before theinvestor receives a significant portion of the cash flow
from his or her investment.
2oupon >ffects on %rice 8olatility
The amount of bond price volatility depends on three
basic factors#
+ length of time to maturity
+ ris!
+ amount of coupon interest paid by the bond
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
24/26
Menejemen Keuangan II/M 1
Minggu I Page 24
2urrent ?ield
!he (urrent 2ield measures the annual return to aninvestor based on the current price.
(urrent 3 nnual (oupon Interest
2ield (urrent )arket -rice
6or eample, a *;5 coupon bond which is currently selling at
4*,*@; would have a current yield of#
2urrent < 4*;; < A.5
?ield 4*,*@;
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
25/26
Menejemen Keuangan II/M 1
Minggu I Page 25
Theyield to maturitymeasures the compound annual
return to an investor and considers all bond cash flows.
It is essentially the bond3s IRR based on the current
price.
'otice that this is the same equation we saw earlier when we
solved for price. The only difference then is that we are
solving for a different un!nown. In this case, we know themar!et price but are solving for return.
%8 < I* = I = C = $In= 9n
$*=!* $*=! $*=!n
?ield to 9aturity $?T9
-
7/25/2019 Sesi 1 Manajemen Keuangan 2 KKG REVISI
26/26
Menejemen Keuangan II/ Minggu I Page 26
'ote that the yield to maturity will only be equal if the
bond is selling for its face value $4*,;;;.
(nd that rate will be the same as the bond3s coupon rate.
6or premium bonds, the current yield D ?T9. 6or discount bonds, the current yield E ?T9.
?ield to 9aturity $?T9
The yield to maturity measures the compound annual
return to an investor and considers all bond cash flows.
It is essentially the bond3s IRR based on the current
price.