# How does the yield to maturity on a bond differ from the coupon yield or current yield?

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The rate of return anticipated on a bond if held until the end of its lifetime. YTM is considered a long-term bond yield expressed as an annual rate. The YTM calculation takes into account the bond's current market price, par value, coupon interest rate and time to maturity. It is also assumed that all coupon payments are reinvested at the same rate as the bond's current yield. YTM is a complex but accurate calculation of a bond's return that helps investors compare bonds with different maturities and coupons.
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# What are the different types of yields on bonds?

yield to worst (to maturity or to call date) . current yield . coupon yield

# If a bond with face value of 1100 and a coupon rate of 8 is selling at a price of 970 is the bond's yield to maturity more or less than 8 and what is the current yield?

When a bond sells at a discount, the yield is higher than the coupon rate. Your income is 1,100 x 8% = 88. You invested 970. 88/970 = 9.07% 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?

# Price and Yield- An 8 percent semiannual coupon matures in 5 years The bond has a face value of 1000 and a current yield of 8.21 percent What are the bonds price and YTM?

The bond's price is \$996.76. The YTM is 8.21%. by E. Sanchez

# Difference enters bond's coupon interest rate the current yield y bond-holder's required rate of return?

Difference enters bond's coupon interest rate the current yield y bondholder's required rate of return? .

# If a bond's yield to maturity exceeds its coupon rate does the bond's current yield must also exceed its coupon rate?

No......The price of the bonds will be less than par or 1,000.....

# 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%

# The current yield on a bond is equal to?

Annual interest divided by the current market price

# What is the difference between yield to maturity and yield to call?

Yield to maturity means the interest rate for which the present value of the bond's payments equals the price. It's considered as the bond's internal rate of return. Yield to.

# The Heuser Company's currently outstanding bonds have a 10 percent coupon and a 12 percent yield to maturity Heuser believes it could issue new bonds at par that would provide a similar yield to matu?

After cost of debt = 12% x (1-0.35) = 7.8%

# 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.

# Difference between coupon rate and yield to maturity?

The coupon rate is the actually stated interest rate. This is the rate earned on a NEW issue bond. The yield to maturity takes into consideration the purchase price of a bond
In Bonds and Treasuries

# Is the current yield greater than the coupon rate for a discount bond?

yes
In The Difference Between

# What is the difference between a discount yield and a bond equivalent yield?

Chamika & n
In Bonds and Treasuries

# What happen when the yield to maturity on a bond is greater than the coupon rate?

When the yield of a bond exceeds it coupon rate, the price will be below 'par' which is usually \$100.
In Uncategorized

# What is a yield to maturity?

A yield to maturity is the internal rate of return on a bond heldto maturity, assuming scheduled payment of principal and interest.
In Bonds and Treasuries

# Does the yield to maturity of a bond decrease as the bond nears maturity?

Nope it doesn't you suck