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Q: How is a bond's current yield determined?
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When are price and yield of government thirty-year bonds determined?

Price and yield are determined at auction.


What are the different types of yields on bonds?

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


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 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.....


Where can I find a financial institution that has/accepts high yield bonds?

Most banks in this economy will turn you down when it comes to the high yield bonds, due to the risk they must take. Your best bet is to check with your current financial institution, and they might accept these with a savings account as insurance.


What are some types of income bonds?

Bonds are sometimes referred to as 'fixed-income securities' because the money a bond provides to it's investor is 'fixed' or 'pre-determined'. Types of income bonds include U.S. Treasury, Agency, Municipal, High Yield, and Corporate.


What happens when a yield to maturity is less than the yield to call?

The issuer will call the bonds and issue new bonds to the maturity date.


Where can one find high yield municipal bonds?

Someone that is looking for information on high yield municipal bonds, can do so by researching with websites such as About, Wikipedia, as well as Learn Bonds.


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


What are the bond types from lowest to highest yield?

The different types of bonds includes Treasury bonds which are released by US government. Agency bonds which are issued by organizations registered or affiliated with US Federal government, municipal bonds which are issued by counties or cities have medium to low yield, Corporate bonds which are issued by companies, have high yields, high yield bonds which are issued by corporations.


Measures of Bond Yields – Current Yield?

If you’re investing in bonds you need to understand a bit about yield measures for fixed income assets. It’s not as straightforward as looking at a money market yield or an APY on a savings account. The reason is that bonds represent a series of cash flows extended over a period of time. The time dimension adds the complexity of present value math into the equation. One measure that bondholders often use to evaluate bonds is the current yield. The current yield looks at the amount of coupon interest earned in a year in relation to the market price of the bond. It can give an investor an idea of the amount they will earn in interest compared to the price they would pay to invest in a particular bond.The calculation for the current yield is a simple one: current yield = annual dollar amount of coupon interest / market price of the bond. (The following example is taken from the book Fixed Income Mathematics by Frank J. Fabozzi.) Consider the case of a bond with an 18 year term that pays a 6% annual coupon. Let’s assume the price paid for the bond is $700.89. In this case the calculation would be the annual coupon interest of $60 (par value of $1,000 * .06) divided by the market price of $700.89. The resulting current yield is 8.56%. The current yield calculation can give an investor a quick way to analyze and compare individual bonds prior to putting their money down on the table. Using the current yield as a metric does have one drawback that should be considered. The current yield only takes into account the coupon and the market price. It doesn’t consider the timing of the cash flows or any capital gain (or loss) at time of the bond’s maturity. So investors can use the current yield as a quick comparison, but should be warned about solely using it to compare investment opportunities. Next time, I’ll discuss another measure of bond yields called the Yield to Maturity. The Yield to Maturity considers additional elements that the current yield does not and can be a better metric to compare bond to bond.


What are the benefits of high yield bonds?

The best benefits of high yield bonds are they are issued by low credit organizations, they are a leading agency, and they work to protect your debt .