G12 - Asset Pricing; Trading Volume; Bond Interest RatesReturn

The article describes the procedures by which you can appreciate the potential receivables and payables, whose size depends on interest rates (reference interest rates e.g. 1M USD LIBOR) or reference exchange rates. The article describes the procedure, which enables to estimate price of conditional flows of payments having the character of OTC currency options or interest rate options. The reader is shown procedures for estimating the forward interest rates and forward exchange rates and it is shown how to estimate the forward rate and forward exchange rates used in the valuation of OTC options - European and American (US) currency call and put options, Asian (average) interest rate option, and interest rate option - cap and floor. It is shown how one can make the measurement of a class of so-called interest rate forwards and currency forwards and interest rate futures and currency futures. The mentioned valuation model does not require the use of a binomial or Black-Scholes option pricing model, which greatly simplifies the use of the mentioned valuation procedures in this paper.

The article describes the valuation of callable and puttable bonds without the need for treatment based on modeling of interest rates movement and without using of binomial or Black-Scholes option pricing model, using only the functions min and max. This paper also demonstrates how to calculate potential price - value of bonds, which contain the chained call (put) option - i.e. the valuation of bonds, when bond issuer (owner) may at its option choose a lump sum payment of the bond face value at a predetermined time point in the future. Attention is also paid to generalization of callable and puttable options to other types of option rights to payment flows associated with the existence of bonds incl. structured products. It is all about valuation of alternative payment flows that occur based on the simultaneous selection streams of payments by the owner of the bond and by the issuer of the bond.

Paper analyzes theoretical background and provides the valuation formulas for standard and amortized Interest Rate Swap (IRS) valuation. Valuation IRS is provided in time of buy or sell IRS or as the valuation of the existing IRS. Paper provides practical aspects of valuation for valuation practice practice and includes necessary formulas too. Problems with display of IRS in double-entry accounting are mentioned also. Paper drew attention to the difficulties of capturing the IRS as the investment tool with "zero" price in the assets or increasing the amount of balance sum in cases where IRS is recorded as a pair of transactions "purchased bond" and "issued bond".

The study analyzes the negative relationship between stock market returns and inflation. This finding is contrary to the standard view of the stock as an instrument for hedging of property against rising prices. The paper aims to summarize the main theoretical explanations for this relationship and replicates with the empirical data from the United States and the Czech Republic earlier study explaining the relationship with a string of fiscal and monetary reasons. The study used standard correlation and regression analysis. Results of the study for the most part did not confirm earlier conclusions about a possible explanation of the negative relationship between inflation and stock returns with those reasons.

The reviewed article focuses on elaboration of the boundary value category that is viewed as a quantity with more dimensions. Within preparation for bargaining during sale of a firm, partners must clear up not only the boundary value but also other bargain parameters. They must do it in such way that will increase their wealth in comparison with situation when the transaction is not realized. In this general position the boundary model has only theoretical sense but it can be viewed as the first step toward further development of Koln school theories.

The article concerns some problems, which challenge the valuators of firms. They are following: the choice the appropriate relevant market as the model for estimation of the future firm economic development, the relation between the firm strategic and financial analysis, the relation between the amount of depreciations and investments in future years, the determination between the valuation for the finite or infinite time, application of the lower discount rate for the I. phase of the valuation and the warning about the faults in formulations the regression analysis between the development of the relevant market and the economic development of the firm. Author warns about the simplification of these problems in valuation reports.

Introduction of fair value into financial accounting and reporting is a consequence of accounting development in practice, in the last decade of the 20th century. Tendency to introduce fair value, even into SME accounting and reporting, brings fundamental obstacles. There are comments on published IFRS for Small and Medium-sized Entities (ED SME IFRS, 2007) in this text. Public comments are supported by results from field testing realized in Finland. The US SEC shall have the authority under the securities laws to suspend the application of Statement Number 157 of the FASB if the Commission determines that is necessary or appropriate in the public interest and is consistent with the protection of investors.

The article warns about the unacceptable classification of the intangible assets in the International Valuation Standards (IVS), especially because intangible assets are sorted out in the partial items that are very difficult to be evaluated individually. To support this assertion, the article contains the short excerption from the article published in the magazine Virginia Law Review, in which the American authors have proved, that the basic forms of intellectual property are economically connected very sharp and this connection lasts not during legal protection, but even after the protection if finished. By this way, the Americans authors have supported both the critics of the actual classification of intangible assets included in IVS and the propositions that are in the third part of the article. The propositions are based on the idea, that the valuators of the intangible assets should to set the matrix table of the relationship among the parts of intangible assets and to evaluate the parts, in which the most influence of other forms of intangible assets are included.

This paper deals with the nature and height of HML and SMB premiums from the point of view of recent literature on these topics. We can say that although this theme is quite new, it attracted appropriate attention and many authors have proved statistically existence of these premiums. However the question is still about their nature, respectively whether in the case of HML it is not false causality rather than premium. Even though several authors find narrow relationship between risk and HML premium, opinions form a wide range and the discussion still goes on. We consider implied cost of capital being interesting methodological instrument for looking into nature of HML premium.

In this article is analyzed duration as a measure of interest risk of bonds. We study significant factors which influence on highness of duration and also price chance of bonds. We discuss different ways to calculate duration and also we try to show its importance to management of bonds portfolio.

Technical analysis is a method of predicting price movements and future market trends by studying charts and future of past market action. By technical analysts are used past information about prices, volume of trading and indexes for predicting futures prices movements. Technical analysis is a subjective "art" or skill whose success depends on a great deal on the analyst experience. Technical analysis is based on three underlying principles: 1.Market action discounts everything, 2.Patterns exists and 3.History repeat itself. The technical analyst has a wide variety of technical analysis tools and techniques to choose from. It is possible all tools of technical analysis dividing into too group. First of them contents different types of charts and seconds of them is composed from technical indicators. There are several types in Europe and America less known charts of technical analysis as for example Kagi Chart, Three Line Break Chart and Renko Chart. These types of charts can be successfully used for identification changes of trend on the capital, commodity or currency markets. Basic principles for plotting these types of charts are special, however very clear. Their basic principles come from Japanese philosophy.