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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.

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If the Treasury yield curve is downward sloping how would the yield to maturity on a 10 year Treasury coupon bond compare to that on a 1 year Treasury bill?

The yield on a 10-year bond would be less than that on a 1-year bill


How do you calculate the yield on a 3-month treasury bill?

To calculate the yield on a 3-month treasury bill, you divide the difference between the face value and the purchase price by the purchase price, and then multiply by 100 to get the percentage yield.


Does a yield treasure bond exceed the yield on a coperate 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.


What is the definition of Treasury Bill?

definition of TREASURY BILLS is... treasury bills are issued by the state bank or central bank against the loan or money taken by federal government of that state.


How do you calculate the yield on treasury bills?

To calculate the yield on treasury bills, you can use the formula: Yield (Face Value - Purchase Price) / Purchase Price (365 / Days to Maturity). This formula takes into account the difference between the face value and purchase price of the treasury bill, the number of days to maturity, and the number of days in a year.

Related Questions

Will the yield on a 2 year corporate bond 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


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


If the Treasury yield curve is downward sloping how would the yield to maturity on a 10 year Treasury coupon bond compare to that on a 1 year Treasury bill?

The yield on a 10-year bond would be less than that on a 1-year bill


What does inverted treasury yield curve suggest?

Inflation


How do you calculate the yield on a 3-month treasury bill?

To calculate the yield on a 3-month treasury bill, you divide the difference between the face value and the purchase price by the purchase price, and then multiply by 100 to get the percentage yield.


Does a yield treasure bond exceed the yield on a coperate 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.


How do you calculate the yield on treasury bills?

To calculate the yield on treasury bills, you can use the formula: Yield (Face Value - Purchase Price) / Purchase Price (365 / Days to Maturity). This formula takes into account the difference between the face value and purchase price of the treasury bill, the number of days to maturity, and the number of days in a year.


What is the definition of Treasury Bill?

definition of TREASURY BILLS is... treasury bills are issued by the state bank or central bank against the loan or money taken by federal government of that state.


If the yield curve is downward sloping what is the ytm on a 10 year Treasury coupon bond relative to that on a 1 year T-bond?

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


What is the definition of food yield?

Food yield is the entire amount of food that is obtained in one yield.


What is the current yield on the 10-year Treasury bond according to the St. Louis Fed data?

The current yield on the 10-year Treasury bond, based on data from the St. Louis Fed, is approximately 1.5.


A treasury bond that matures in 10 years has a yield of 6 percent?

Agree