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Q: When the market rate of interest is equal to the stated rate of interest on the bond the bond will require?
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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.


How would you define efficient security markets?

The efficient security markets can be defined as a market whereby the prices of the securities fully reflect all the public information at all times. The market efficiency does not require that the market prices be equal to that of the true value at every point in time.


IF Covered Interest rate Parity says that interest rate differential equal?

forward/discount rate premium


What is the market cap for VelocityShares Equal Risk Weighted Large Cap ETF ERW?

As of July 2014, the market cap for VelocityShares Equal Risk Weighted Large Cap ETF (ERW) is $31,282,368.76.


Is the interest rate on a saving account good or bad why?

Considering the amount of liquidity provided, the interest offered on savings accounts is good but the returns are not so great that we can claim it to be useful. The interest offered is not even equal to the nations inflation rate and hence maintaining large chunks of money in savings accounts is not a wise move. Deposit the surplus in a fixed deposit and retain only the liquid cash that you may require in your savings account.

Related questions

How would you define the market rate for a bond?

The actual interest rate, however, determined at auction, is referred to as the market rate. The market rate may equal the stated rate, or it may be higher or lower.


The current yield on a bond is equal to?

Annual interest divided by the current market price


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.


With a tenants in common ownership do you need to put the percentage each person will own on the deed?

You don't need to recite a percentage of ownership unless you want to create a co-ownership that is not equal. If no percentage is recited the parties automatically acquire a 50% interest. If you want a different division it must be clearly stated on the deed.You don't need to recite a percentage of ownership unless you want to create a co-ownership that is not equal. If no percentage is recited the parties automatically acquire a 50% interest. If you want a different division it must be clearly stated on the deed.You don't need to recite a percentage of ownership unless you want to create a co-ownership that is not equal. If no percentage is recited the parties automatically acquire a 50% interest. If you want a different division it must be clearly stated on the deed.You don't need to recite a percentage of ownership unless you want to create a co-ownership that is not equal. If no percentage is recited the parties automatically acquire a 50% interest. If you want a different division it must be clearly stated on the deed.


What is goods market equilibrium?

Goods market equilibrium occurs when the amount of desired saving and desired investment are equal, i.e. no unplanned changes in inventory. Both the investment and saving curves are a function of the real interest rate.


What is Market equilibrium?

Market equilibrium is this situation when market demand is equal of market supply


How would you define efficient security markets?

The efficient security markets can be defined as a market whereby the prices of the securities fully reflect all the public information at all times. The market efficiency does not require that the market prices be equal to that of the true value at every point in time.


What does 27 minus n equal 1 what does it equal?

As stated in the question, it equals 1.


What interest Walt Whitman?

Equal Rights


What is the market cap for Equal Energy Ltd EQU?

As of July 2014, the market cap for Equal Energy Ltd. (EQU) is $194,173,341.20.


What is The fourth and sixth stated purpose of the US Constitution?

it stated that no man whether black white or german where created equal


What are the determinants of market interest rates?

rd - Quoted or nominal rate of interest on a given security. there are many different securities, hence many different quoted interest rates.r* - real risk-free rate of interest, which represents the rate that would exist on a riskless security if zero inflation were expected.IP - Inflation premium is equal to the average expected inflation rate over the life of the security. The expected future inflation rate is not necessarily equal to the current inflation rate, so IP is not necessarily equal to current inflation.rRF - r* + IP and it is the quoted risk-free rate of interest on a security such as U.S. Treasury bill, which is very liquid and also free of most risks.DRP - default risk premium reflects the possibility that the issuer will not pay interest or principal at the stated time and in the stated amount. DRP rises as the riskiness of issuers increases.LP - Liquidity premium that is charged by lenders to reflect the fact that some securities can't be converted to cash on short notice at "reasonable" price. LP is very low for Treasury securities and for securities issued by large strong firms, but it is relatively high on securities issued by small firms.MRP - Maturity risk premium is charged by lenders to reflect the risk of price declines.