# Results for: yield-to-maturity

### 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. Full Answer

### 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 Full Answer

### What is the promised yield to maturity calculation assumes?

The promised yield to maturity calculation assumes Full Answer

### 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. Full Answer

### 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 Full Answer

### 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… Full Answer

### Compute the current price of the bonds if the present yield to maturity is?

Compute the current price of the bond if percent yield to maturity is 7% Full Answer

### What happens when a yield to maturity is less than the yield to call?

The issuer will call the bonds and issue new bonds to the maturity date. Full Answer

### How is yield curve used in finance?

A yield curve is a graph that shows the relationship between yield and maturity on bonds. The graph plots the time or maturity on the x-axis and the yield on the y-axis. The yield curve will show how the yield… Full Answer

### What are the different types of yields on bonds?

* yield to worst (to maturity or to call date) * current yield * coupon yield Full Answer

### Does the yield to maturity of a bond decrease as the bond nears maturity?

Nope it doesn't you suck Full Answer

### What is the difference between yield to maturity and yield to call?

Yield to maturity means the interest rate for which the present value of the bond's payments equals the price. It's considered as the bond's internal rate of return. Yield to. call is a measure of the yield of a bond… Full Answer

### 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… Full Answer

### How do you calculate book yield?

Book yield, also called yield to maturity can be calculated by the time period rooted of the face value over the present value minus one. The book yield is a percentage that shows how much the bond gains a year… Full Answer

### The market interest rate related to a bond is also called the?

"Yield" or "YTM" ("Yield to Maturity") Full Answer