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Compute the current price of the bonds if the present yield to maturity is?
Compute the current price of the bond if percent yield to maturity is 7%
If a coupon bond is selling at par does the current yield equal its yield to maturity?
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.
What are the different types of yields on bonds?
* yield to worst (to maturity or to call date) * current yield * coupon yield
A 6-year Circular File bond pays interest of 80 annually and sells for 950 What are its coupon rate current yield and yield to maturity?
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?
What is gross redemption yield?
For GRY you need: Years to maturity Par Value Current Value (market Price) Running Yield The formula is: ((( Par + (Interest x years left to maturity)) - Market Price) / Years left to maturity) / Market Price
Does the yield to maturity represent the promised or expected return on the bonds?
The yield to maturity represents the promised yield on a bond
Does the yield to maturity represent the promised or expected return on the bond?
The yield to maturity represents the promised yield on a bond
Distinguish between current yield an yield to maturity of a fixed income security how are these yields calculated?
Current yield is equal to the annual interest payment divided by the market price. It is the actual yield an investor will receive (instead of what is stated). For example, if a bond has a stated rate of 5 percent, but is selling below par, the investor would receive more than a 5 percent return. If the bond is selling above par, the current yield is actually less than 5 percent. Yield to maturity is the total return an investor will receive if the security is held until the maturity date, which is all of the annual interest payments and the difference between the original price and the principal you will receive at maturity. This formula is much more complicated but there are websites that will do it for you. Try moneychimp.com which has a calculator for the current yield and YTM.
What is the promised yield to maturity calculation assumes?
The promised yield to maturity calculation assumes
What is a yield to maturity?
A yield to maturity is the internal rate of return on a bond held to maturity, assuming scheduled payment of principal and interest.
Will a bond's yield to maturity increase or decrease if a bond 's price increases?
as yield to maturity increases the bonds price decreases, because a higher yield to maturity means its riskier to investors
Yield to maturity vs yield to call?
Yield to maturity assumes that the bond is held up to the maturity date. This is a disadvantage. If the bond is a yield to call , it can be called prior to the maturity date. Thus, the ivestor should sell the callable bond prior to maturity if he expects that he will earn higer return by doing so (in other words when yeild to call is higher than held to maturity).
