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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
The market interest rate related to a bond is also called the?
"Yield" or "YTM" ("Yield to Maturity")
Will a bonds yield to maturity increase or decrease if the bond is downgraded by the rating agencies?
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.
What is likely to happen to yield to maturity on bonds in the marketplace if inflationary expectations increase?
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.
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.
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
How does the yield to maturity change over time?
The yield to maturity of a bond generally decreases over time as the bond approaches its maturity date. This is because as the bond gets closer to maturity, the price of the bond tends to increase, which in turn lowers the yield to maturity.
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
The market interest rate related to a bond is also called the?
"Yield" or "YTM" ("Yield to Maturity")
Will a bonds yield to maturity increase or decrease if the bond is downgraded by the rating agencies?
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.
What is likely to happen to yield to maturity on bonds in the marketplace if inflationary expectations increase?
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.
Will a bond's yield to maturity increase or decrease when the bond become subordinated to another debt issue?
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.
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.
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
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
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.
