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Corporate Bond yields are the amount of return over a period that a bond will return. A good yield for a corporate bond is between 4 and 8 percent although in the current climate this may dip a little
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.
A current yield is a bond's annual return based on its current price. This is different from its original price and face value.
IRR (Internal Rate of Return) is a metric used in corporate finance to assess the relative value of projects. YTM (Yield to Maturity) is a metric used in bond analysis to determine the relative value of bond investments. Both are calculated the same way, by assuming that cash flows from the project/bond are consumed.
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?
The yield on a 2 year corporate bond will always exceed the yield on a 2 year treasury bond
Corporate Bond yields are the amount of return over a period that a bond will return. A good yield for a corporate bond is between 4 and 8 percent although in the current climate this may dip a little
The yield on a 2 year corporate bond will always exceed the yield on a 2 year treasury bond
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.
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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.
A current yield is a bond's annual return based on its current price. This is different from its original price and face value.
A current yield is a bond's annual return based on its current price. This is different from its original price and face value.
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.
IRR (Internal Rate of Return) is a metric used in corporate finance to assess the relative value of projects. YTM (Yield to Maturity) is a metric used in bond analysis to determine the relative value of bond investments. Both are calculated the same way, by assuming that cash flows from the project/bond are consumed.
Compute the current price of the bond if percent yield to maturity is 7%
Annual interest divided by the current market price