6th Edition Updates
5th Edition Updates
The following cases have been updated. Click the links below to download the latest version. You may distribute these pages directly to students, or refer them to the student website.
Chapter 8 Data Case Update (IBM Capital Budgeting)
The Chapter 8 data case has been revised to provide more natural assumptions for investment and improved clarity.
Chapter 9 Data Case (Columbia Sportswear Valuation)
The Chapter 9 data case has been revised to a more natural long-run growth rate assumption as well as to account for changes made by Morningstar.
Chapter 10 Data Case (Portfolio Volatility)
The Chapter 10 data case has been revised due to changes in the Yahoo Finance Website.
4th Edition Updates
Chapter 6 Data Case (Sirius XM Radio)
Part 2. Unfortunately, the bondsonline.com site no longer provides Reuters bond yield data. To estimate current default or yield spreads for corporate bonds (that is, the difference between the Treasury rate and the yield of a typical corporate bond, based on its rating), you may use the graph below. By holding your cursor near the right end of the chart, you will see a pop-up with current yields spreads for AAA, AA, A, BBB, BB, B, and CCC (or below) rated corporate bonds. (Note: these are called “option-adjusted spreads” as they adjust for the different prepayment options the bonds may have in order to assess what the spread would be without such options.) By looking at the full chart you can see how these spreads have changed over time.
Note that the above chart only provides information by rating, not by maturity. As an alternative, you may use the table below, which shows average bond spreads by rating and maturity as of 2014. Note that spreads are indicated in basis points (0.01%). Though not completely current, this table demonstrates how yield spreads generally increase with bond maturity.
Other useful sites include:
- For bond quotes: http://finra-markets.morningstar.com/BondCenter/Screener.jsp
- For estimates of bond spreads: http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/ratings.htm
Chapter 24 Data Case (Home Depot)
As with the Chapter 6 data case, the bondsonline.com website no longer provides bond yield spread data from Reuters. Please see the Chapter 6 Data Case (above) for alternatives.