Search results
Results from the WOW.Com Content Network
Yield to put (YTP): same as yield to call, but when the bond holder has the option to sell the bond back to the issuer at a fixed price on specified date. Yield to worst (YTW): when a bond is callable, puttable, exchangeable, or has other features, the yield to worst is the lowest yield of yield to maturity, yield to call, yield to put, and others.
yield to put assumes that the bondholder sells the bond back to the issuer at the first opportunity; and; yield to worst is the lowest of the yield to all possible call dates, yield to all possible put dates and yield to maturity. [7] Par yield assumes that the security's market price is equal to par value (also known as face value or nominal ...
The year's peak savings rates have slipped in the wake of the Federal Reserve's Sept. 18 decision last week to lower interest rates by half a point — the first rate cut in four years — and ...
Current Yield – But now consider how yield changes if the price of that same bond falls. If the bond mentioned above is resold for $800 it results in a current yield of 6.25%.
The current yield, interest yield, income yield, flat yield, market yield, mark to market yield or running yield is a financial term used in reference to bonds and other fixed-interest securities such as gilts. It is the ratio of the annual interest payment and the bond's price:
Tax-equivalent yield = Municipal bond yield / (1 – your total tax rate) For example, imagine you pay federal tax at a 24 percent rate and state tax at a rate of 6 percent, and the municipal bond ...
If these circles were put on a balance beam, the fulcrum (balanced center) of the beam would represent the weighted average distance (time to payment), which is 1.78 years in this case. For most practical calculations, the Macaulay duration is calculated using the yield to maturity to calculate the ():
Prevailing economic conditions, the shape of the yield curve, and the volatility of interest rates. upsloping yield curve—caps will be more expensive than floors. the steeper is the slope of the yield curve, ceteris paribus, the greater are the cap premiums. floor premiums reveal the opposite relationship.