Which of the following is most correct?
a. The yield on a 2 year corporate bond will always exceed the yield on a 2 year treasury bond.
b. The yield on a 3 year corporate bond will always exceed the yield on a 2 year corporate bond.
c. The yield on a 3 year treasury bond will always exceed the year on a 2 year treasury bond.
d. All of the answers above are correct.
e. Statements a and c are correct.
If the yield curve is downward sloping, the yield to maturity on a 10-year Treasury coupon bond relative to that on a 1 year T-bond is the yield on the 10 year bond. It will be less than the yield on a 1-year bond.Ê
Municipal Bond Tax Equivalent Yield This calculator will estimate the tax-equivalent yield (TEY) for a municipal bond. Income generated from municipal bond coupon payments are not subject to federal income tax. In addition, if the bond was issued in your state of residence, you can also avoid state income taxes. Use this calculator to determine the yield required by a fully taxable bond to earn the same after tax income as a municipal bond.
This can't be answered without more information (ie coupon and term/maturity). However, the yield will exceed the coupon rate as the price is less than 100
Bond Pricing. A 6 year circular file bond pays interest of $80 annually, and sells for $950. What are its coupon rate, Current yield, and yield maturity?
Credit Suisse High Yield Bond Fund (DHY) had its IPO in 1998.
The yield on a 2 year corporate bond will always exceed the yield on a 2 year treasury bond
The yield on a 2 year corporate bond will always exceed the yield on a 2 year treasury bond
No......The price of the bonds will be less than par or 1,000.....
is the yield of a bond in the market
neither once the bond is created the yield is set. the bond price is simply a reflection of the current rate and the rate, 'yield' of the bond.
The yield to maturity represents the promised yield on a bond
When market interest rates exceed a bond's coupon rate, the bond will:
what is relationship between bond price and yield?
If the yield curve is downward sloping, the yield to maturity on a 10-year Treasury coupon bond relative to that on a 1 year T-bond is the yield on the 10 year bond. It will be less than the yield on a 1-year bond.Ê
Yield usually refers to yield to maturity. If a bond is trading at par it usually means the yield to maturity is equal to the coupon.
A bond yield is the price of a bond that an investor will hold said bond to maturity at. This relates to price as the price dictates when the investor will sell their bond.
Check out Invesco Powershares High Yield Corporate Bond Portfolio which replicates Wachovia High Yield Bond Index. Rambo