increase
as yield to maturity increases the bonds price decreases, because a higher yield to maturity means its riskier to investors
Changing of rating, in and of itself, will not affect the yield, but more generally, a more negative market view will see the yield rise and the price fall.
"Yield" or "YTM" ("Yield to Maturity")
The prices of bonds will fall and yields to maturity (or call date) will rise, since investors will require greater yields on their investments to offset the expected increase in inflation.
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.
as yield to maturity increases the bonds price decreases, because a higher yield to maturity means its riskier to investors
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
Changing of rating, in and of itself, will not affect the yield, but more generally, a more negative market view will see the yield rise and the price fall.
"Yield" or "YTM" ("Yield to Maturity")
The prices of bonds will fall and yields to maturity (or call date) will rise, since investors will require greater yields on their investments to offset the expected increase in inflation.
The yield to maturity will most likely increase because the bond will be considered more risky. This means investors will demand a higher yield to own it. Of course, the yield to maturity will only be higher if all the payments are actually made and the bond doesn't default.
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.
The yield to maturity represents the promised yield on a bond
The yield to maturity represents the promised yield on a bond
The promised yield to maturity calculation assumes
A yield to maturity is the internal rate of return on a bond held to maturity, assuming scheduled payment of principal and interest.
When the yield of a bond exceeds it coupon rate, the price will be below 'par' which is usually $100.