enow.com Web Search

Search results

  1. Results from the WOW.Com Content Network
  2. Yield to maturity - Wikipedia

    en.wikipedia.org/wiki/Yield_to_maturity

    With 20 years remaining to maturity, the price of the bond will be 100/1.07 20, or $25.84. Even though the yield-to-maturity for the remaining life of the bond is just 7%, and the yield-to-maturity bargained for when the bond was purchased was only 10%, the annualized return earned over the first 10 years is 16.25%.

  3. The Relationship Between Bond Prices and Interest Rates - AOL

    www.aol.com/finance/relationship-between-bond...

    Many investors may use the following formula to calculate bond prices: P(T 0) = ... r = yield to maturity. n = number of periods. When considering bond prices, higher coupon rates, par values or ...

  4. Duration (finance) - Wikipedia

    en.wikipedia.org/wiki/Duration_(finance)

    Expression (3) which uses the bond's yield to maturity to calculate discount factors. The key difference between the two durations is that the Fisher–Weil duration allows for the possibility of a sloping yield curve, whereas the second form is based on a constant value of the yield , not varying by term to payment. [10]

  5. Current yield - Wikipedia

    en.wikipedia.org/wiki/Current_yield

    The current yield refers only to the yield of the bond at the current moment. It does not reflect the total return over the life of the bond, or the factors affecting total return, such as: the length of time over which the bond produces cash flows for the investor (the maturity date of the bond),

  6. Bond Price vs. Yield: Why The Difference Matters to Investors

    www.aol.com/bond-price-vs-yield-why-140036009.html

    Holding that bond for one year (to maturity) would result in a yield of 5%. That would be its coupon yield or nominal yield. Current Yield – But now consider how yield changes if the price of ...

  7. Bond valuation - Wikipedia

    en.wikipedia.org/wiki/Bond_valuation

    The yield to maturity (YTM) is the discount rate which returns the market price of a bond without embedded optionality; it is identical to (required return) in the above equation. YTM is thus the internal rate of return of an investment in the bond made at the observed price.

  8. Forward rate - Wikipedia

    en.wikipedia.org/wiki/Forward_rate

    The forward rate is the future yield on a bond. It is calculated using the yield curve. For example, ... The discount factor formula for period (0, t) ...

  9. Yield (finance) - Wikipedia

    en.wikipedia.org/wiki/Yield_(finance)

    yield to call uses the same methodology as the yield to maturity, but assumes that the issuer calls the bond at the first opportunity instead of allowing it to be held until maturity; 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 ...