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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).
Should investors be cautious when relying on yield to maturity. Why are the two major assumptions needed to make yield to maturity the true return.?
Not sure which two you're looking for so here are three: 1. You hold the bond to maturity 2. You get your principal and coupon payments when promissed 3. There's no change in the reinvestment rate 4. The bond has a fixed coupon with no prepayment options
How long is it from NJ to Paris France?
I don't Know its so hard to calculate
Are roborovski hamsters hard to take care of?
It depends on your age and maturity. Robos are tiny so they can escape easily, get a glass cage so it won't slip through bars.
Why do potassium salts of fatty acids yield soft soap?
Potassium salts of fatty acids should yield soft soaps because they are more soluble in water than sodium salts of fatty acids (which yield hard soaps). They contain more water, so they are softer.
Why did Pharaoh not yield?
His heart was hardened, so he couldn't yield.
What is market yield?
Yield means the return so market yield means the return given by the market
Will a bond's yield to maturity increase or decrease when bankruptcy happens?
With bonds traded in the open market, it is the accepted rule that when price goes up, yield goes down. This is due to the fact that the terms of the bond do not change once it is issued. If a bond is issued with a 3% coupon, for example, that money is guaranteed for the person who is holding that bond to maturity. So if the price of the bond goes down, the yield will actually go up since you are actually paying less for that same amount of guaranteed money. Keep in mind that current yield is coupon/price. A high yield though is not always a good thing. These bonds that have a high yield as a result of being traded at a very low price are colloquially known as junk bonds, although the industry term for them is "high yield". High yield is obviously a good thing, but the implication is that those bonds carry a very high risk of non-payment. This could be because the issuer is not trustworthy in their ability to repay. Usually high yield bonds come from sources that have poor ratings from Moody's, S&P and Fitch or are not rated at all. Thus it all comes down to risk vs. reward. If one of these high yield bonds actually does pay out on maturity, the holder is a big winner. What is also likely is that the bond issuer defaults on the responsibility and the holder loses. In the case of a bankruptcy it is always the case that risk increases which will drive down price which, as discussed above, will push yield up.
Why is a change in required yield for preferred stock likely to have a great impact on price than a change in required yield for bonds?
Bonds have a maturity date while most preferred stocks are perpetual, which means they never mature. No matter the change in interest rates before maturity, bonds will eventually be worth par or 100 when they mature. So interest rate changes may affect the price in the near term but the investor will know what s/he will get at maturity. Since preferred stocks never mature, there is no value in the future that anchors the price of the bond. Therefore, if interest rates go up, the value of the preferred may be permanently impacted by a better interest rate than the stated dividend yield. Thus, the price of the preferred stock will be volatile than that of a bond.
What is the difference between actual yield and theoretical yield?
Theoretical= calculated
How much do red pandas eat?
they eat so little that it is so hard to calculate how much it eats due to the constant behavior of said animal.
What can I use to calculate mortgage payments?
Mortgage payments are very expensive nowadays, so you have to work hard to get rich and to get all the worldly desires you have, you can use a calculator to calculate mortgage payments.
