Tagged Questions

Use this tag for questions that relate to debt instruments known as bonds. Generally, money is lent to governments or corporations that is paid back with interest.

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Formula to compute 10 year US governement bond price given yield

What is the formula to convert US govy 10 year yields (as those shown here) in to bond prices? I know in general the math looks like this but I don't know what the values of the variables are for a ...
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Are foreigners who buy UK ETFs subjected to a withholding tax?

Currently, when a foreigner buys U.S ETFs, the dividends or income (in the case of bond ETF) will be taxed at 30%. Suppose a foreigner, say an American or Singaporean, buys a UK bond ETF. Is there a ...
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How do you use the formula for YTM when the compounding is semi-annual?

How do I calculate yield-to-maturity (YTM) with a simple handheld calculator? do we multiply n by 2?
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What is an undervalued or overvalued bond?

Here's a small excerpt from Bond Valuation section on Investopedia: Determining Whether a Bond Is Under or Over Valued What you need to be able to do is value a bond like we have done before ...
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Why is a 2-year bond not a good store of nominal value?

I was recently confronted with the following question: Which of the following is not a good store of nominal value? a: checking deposit b: savings deposit c: 1 2-year bond d: a 3-month CD The ...
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How to calculate yield to maturity on Excel

Excel has a function RATE, which seems to work fine if your yield to maturity is an integer. However, in real life, maturity of the most bonds we handles do not have have maturity which exactly 6 ...
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What is the catch for the wide spread between Noble Bonds and Noble Bonds CDS

What does CDS stand for Noble bond fund info Based on this article, assuming i buy 10 million worth of Noble bonds today which gives me an annual yield 26.4 percent and buy the 5 years CDS at 16 ...
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What are the yields for European high yield corporate debt as of now and historically?

What are the yields for European high yield corporate debt as of now and historically? I would like to be able to view yield breakdowns by rating (-B, -BB, C and lower) and maturity.
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Calculate rate of return

If I sell my bond at \$982, then reinvest it with market rate of 12% Coupon is \$100, face value is 1000, what would be my rate of return my 2nd year? Yield to maturity is 2 years. I've calculated my ...