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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.
The yield on a 10-year bond would be less than that on a 1-year bill
If the yield curve is downward sloping, the yield to maturity on a 10-year Treasury coupon bond relative to that on a 1 year T-bond is the yield on the 10 year bond. It will be less than the yield on a 1-year bond.Ê
Agree
The yield of a bond is the interest that it pays (annualized) divided by the purchase price of the bond (taking into account any discount or premium on the price). Treasury yield refers to the actual interest rate on bonds issued by the U.S. Treasury. Treasury yield is not a single number, because they issue bonds with many different maturities (from 1 month to 30 years); the yields on the 2-year and 10-year bonds are the most commonly-quoted benchmarks.
The yield on a 2 year corporate bond will always exceed the yield on a 2 year treasury bond
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.
The yield on a 10-year bond would be less than that on a 1-year bill
If the yield curve is downward sloping, the yield to maturity on a 10-year Treasury coupon bond relative to that on a 1 year T-bond is the yield on the 10 year bond. It will be less than the yield on a 1-year bond.Ê
Agree
The yield of a bond is the interest that it pays (annualized) divided by the purchase price of the bond (taking into account any discount or premium on the price). Treasury yield refers to the actual interest rate on bonds issued by the U.S. Treasury. Treasury yield is not a single number, because they issue bonds with many different maturities (from 1 month to 30 years); the yields on the 2-year and 10-year bonds are the most commonly-quoted benchmarks.
There is no 15 year treasury. There is a 10 and a 20 year. You are looking at a 15to 16 % increase based on the total of the interest rates in 2009. Maybe by 2011 you will then find some better interest rates for your 15 year treasury bond.
is the yield of a bond in the market
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.
The yield to maturity represents the promised yield on a bond
what is relationship between bond price and yield?