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A lower coupon bond has a higher relative price change than a higher coupon bond when?
YTM changes YTM changes
Where is the VIN located on a YTM 200?
on the neck
If a bond price increases what happens to yield to maturity?
The YTM on a Bond versus it's Price is inversely related. Thus when the Price of the Bond Increases, the YTM Decreases.
Nighthawk Co issued 15 year bonds one year ago at a coupon rate of 8.4 percent The bonds make semiannual payments If these bonds currently sell for 96 percent of par value what is the YTM?
Using TI84plus got R=7.43 (aprox) YTM=2*7.43% YTM=14.86%
What is the relationship between the coupon rate and the YTM for premium bonds?
klk
What is the rate of return required by investors in the market for owning a bond called?
YTM
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
How is the IRR on a project related to the YTM on a bond?
The IRR on a project is calculated in the same way the YTM on a bond is. Both methods discount the future cash flows of the investment back to the present value and compare them with the appropriate amount; in the case of a bond, it is its current market price while in the case of the IRR method it is zero. The internal rate of return and the yield to maturity are the discount rates that make the present value of expected cash flows equal to the left side of the equation.
Is current Market Rate of Interest the same as yield to maturity?
It depends. YTM is calculated in the same way as IRR. You take all future cash flows and discout it by x% and equate to current market price. Then you solve for x% and what you get will be YTM. So if current price of bond is calculated by current market rate of interest than YTM=Current Market Rate of Interest. How ever bond price not always is equal to that price. Very often current yield(coupon/current market price) is different from current rate of interest. In such case YTM will differ from Current Market Rate of Interest.
The market interest rate related to a bond is also called the?
"Yield" or "YTM" ("Yield to Maturity")
How does the yield to maturity on a bond differ from the coupon yield or current yield?
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.
How will the ytm be calculated for ptc in case of monthly cash payouts or modified Duration?
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