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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
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 will be the approximate yield to maturity on a Treasury bill purchased for 9560 with 94 days to maturity?
I believe the answer is 17.87% yield to maturity. First, find the discount yield: which is par-price/par x 360/94 = 16.85%. Then, take the answer and use a second formula: 365 x D.Y./360 - (D.Y. x 94).
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
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).
What will happen to yield to maturity when market yield increase?
increase
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%
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.
