# Tagged Questions

The tag has no usage guidance.

57 views

### When short negative yielding bonds, who pays the coupon

Assuming the bond was actually issued with a negative coupon, if you are short (borrowing someone else's bond to sell the bond at a lower price / higher yield) Who pays the coupon? There are at ...
117 views

### How to calculate new price for bond if yield increases

I am learning for a class that is partly about finance and I don't have any background in finance at all. I am struggling with a question that was asked in last years exam: A bond trades at £1015, ...
39 views

### How do I calculate annualised yield from simple interest paid quarterly?

A one-year bank deposit pays 7.25% per annum simple interest, paid quarterly. In other words, it pays 7.25 / 4 = 1.8125% every quarter, for four quarters. If I were to reinvest this interest, I will ...
16 views

### 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 ...
52 views

### What are the risk of high dividend closed end index mutual funds ?

I am finally taking ownership of my retirement my very very small nest egg and I am looking to undertake a value based strategy when it comes to investing. I have been gravitating towards high ...
133 views

### Why would I buy a bond with a negative yield?

The only reason that I can think of is because I expect the bond to appreciate in price thus offsetting the loss in yield. I could still end up with less money than I started with, if I hold the bond ...
152 views

### Bond strategies for a steepening yield curve?

If it is believed that the yield curve is going to steepen very soon, it may be fall in short-term rates, a rise in long-term rates, or some combination of these. What strategy should you pursue in ...
30 views

### How to calculate a mutual fund's yield

Suppose that a generic (and over-simplified) XYZ Mutual Fund is made of N stocks of \$25 each. Those stocks pay \$0.3 dividends over the year. I already know that yield is calculated by dividing the ...
76 views

### Calculate APY revolving loan with offset/staggered payment schedule?

I want to buy a weekly meal ticket, 7 lunches for \$7, but do not have \$7 today. Lender says, "I will loan you a consecutive series of 5 meal tickets for 5 consecutive weeks (35 consecutive lunches as ...
63 views

### How do you calculate ETF yield when accounting for expense ratio?

I am not sure how to wrap my head around how to calculate the real yield of an ETF using it's distribution yield and gross expense ratio. What I really want to know is, given both ETF A and ETF B are ...
15 views

### 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.
68 views

### Does a mutual fund's return include fees?

If a mutual fund's published YTD return is 3%, and it has an up-front sales charge of 5% and a 12b1 fee of 2%, are these fees included in the YTD return, or would the "real" return be 3%-5%-2% = -4%?
117 views

### Is it normal that US Treasury bills(0.07%) yield smaller than interest rate(0.25%)?

I assume that under stable economy, US bonds with longer maturities should yield more. However, the current 3 month bill yields 0.07%( 0.23% for 6 months bills), which is below the overnight interest ...
271 views

### Yield, HPR, HPY, YTM and Total return. What are the differences between them?

Yield: The actual return on a debt security if it is held to maturity. Yield to maturity: Annual return that an investor earns on a bond if the investor purchases the bond today and holds it until ...
79 views

### Yield to Maturity and Daycount Conventions

Daycount conventions quoted on wikipedia etc; 30/360, Act/365 etc. Are there any situations where if you hold two instruments for a year with same coupon but different daycounts they would give you ...
154 views

### Are a bond's yield and interest rate the same thing?

Are they the same thing? Is yield the annualized return rate? Why when yield rise, yearly return increases, but price falls?
29 views

### Can I buy a bond at par if I buy it at the time of issuance directly from the issuer

When a company issues bonds, if I buy directly from the company at the time it is being issued, can I hope to buy the bond at par? I am looking at canadian bonds and all of them are selling at premium ...
616 views

### What does “compression of spreads on high-yield debt” mean?

What did Federal Reserve Chair Janet Yellen mean when she said the following? "We’ve also seen the compression of spreads on high-yield debt, which certainly looks like a reach for yield type of ...
67 views

### Why does the Fidelity Canadian Bond Fund have such a high beta? How is it measured?

I am looking at some Canadian bond funds (recommendations welcome) for my RRSP. Relatively safe, and with a dividend yield ~ 3% is good enough. While looking at Fidelity bond funds, I came across this ...
149 views

### Does the growth rate of SPY published by morningstar include the dividend yield

According to morningstar the growth rate for SPY in 2014 was 13.46%. Does this include the dividend yield of SPY ~1.87% or do we need to add this number to the 13.46?
71 views

### Demand for investment-grade bonds with more than 10% coupon?

Though originally posted as a comment here, I don't see an answer. So please allow me to resurrect and broaden this question, to all investment-grade bonds: in other words, 'BBB- or higher by ...
1k views

### What's the difference, if any, between stock appreciation and compound interest?

I'm trying to estimate what the returns for a 9% stock appreciation and a 6% dividend reinvestment investment portfolio would look like and I've read compounding isn't the same as dividend ...
2k views

### What is the best way to calculate total yield on a stock portfolio?

What is the best way to calculate the total yield of a stock portfolio? I started managing my own investments last year and it looks like I leaned towards dividend investing. I am wondering how I ...
3k views

### Did Greece really issue bonds to investors yielding 42% interest?

I read this in the news regarding Greece's financial crisis: The country’s 10-year bond yield fell 11 basis points to 8.04 percent at 12:26 p.m. in Athens today. While that’s down from a record ...
67 views

First off, I'm completely new to all of this, so please go easy on me. According to http://markets.ft.com/research/Markets/Bonds I notice that the yields on the following government bonds are as ...
271 views

### Is there a reason to buy a 0% yield bond?

Right now I can get a 1yr government bond that yields 0%. Is there any reason to buy such a bond? E.G. If the broker holding my accounts goes out of business is my "perceived low risk portion" of my ...
328 views

### Why YTM is higher than current yield in discount bond

I learned that in discount bond, coupon rate < current yield < YTM and the relationship will always hold. I can figure out why coupon rate < current yield. But just cannot don't ...
79 views

### calculate return on investment [closed]

I am interested in calculating returns from a fixed no of periodic investments that is redeemed at a specific time after the last payment. ex : periodic outflow of 3000 on a monthly basis for 8 ...
290 views

### How do I calculate my annual percentage yield?

I have an asset that I purchased at \$440K. 5 years later, I sell this asset at \$725K. How do I compute the annual percentage yield that I have been getting over the past 5 years from this asset?
242 views

### What is the risk to a high-yield corporate bond fund versus an investment-grade corporate bond fund?

The yield for HYG, a high-yield (i.e. junk) corporate bond ETF, is currently 5.72% versus 3.56% for LQD, an investment-grade corporate bond ETF. Of course, higher yield generally means higher risk. ...
3k views

### Bond : Difference between coupon and yield

On a bond chart, I always see the terms: Yield & Coupon, which seem to mean the same thing. What is the difference between these two terms?
155 views

### Bond prices: Why is a high yield sometimes too good to be true?

Thank you for taking the time to explain me this. I'm looking at bonds prices at Yahoo Finance (see attached image) And it seems to good to be true: A-rated bonds at YTM rates of 11% and more. ...
3k views

### Are Bond Coupons reinvested at YTM

I fail to understand reinvestment of coupons to calculate YTM. I understand that YTM is the rate at which coupon payments and ParValue of the bond are discounted to today.i.e C-Coupon & T-Time ...
168 views

### Should I always hold short term bonds till maturity?

If one has bought a bond with few years left for maturity and if the yield to maturity (YTM) when the bond was bought was greater than risk free rate (government deposit rates), would it be ideal to ...
10k views

### How does the 10 year U.S. Treasury bond work?

Can someone explain to me how these bonds work? Are they released to the public at a certain price (face value) and interest rate, and the face value is what traded on in the market place, resulting ...
326 views

### How and Where can I easily pull data for the Dow 30?

Where/How can I pull the following data on the DJIA stocks into Excel from the Web that updates every time I hit refresh in Excel? The data: 1. Last 12 months of dividend payments 2. Prices 3. DJIA ...
3k views

### How to calculate dividend yield for the Dow Jones Industrial Average (DJIA) index?

This should be fairly straightforward. How do I calculate the dividend yield myself for the Dow 30 / Dow Jones Industrial Average (DJIA)? I'm thinking I just add the last dividend for all the ...
1k views

### How do I calculate the total return on a bond series given its yields?

How do I calculate the total return on a bond series given its yields? Is there an equation? I looked at this Investopedia article, but it only refers to stocks in general.
1k views

### Yield of a municipal bond with a sinking fund?

How do I calculate my expected return if I buy a municipal bond at a premium with a sinking fund feature? For example, I'm looking at a bond with a coupon of 5.5%, maturing July 2015, with the ...
218 views

### Expected total principal + gains from a vanguard life cycle account upon retirement after 33 years?

If one maxes out his Roth IRA starting from age 26, investing only into a vanguard target 2045 (lifecycle) fund, what amount can he expect to withdraw at retirement at age 59? I did a quick check ...
533 views

### How do I calculate the dividend yield for Disney Co?

I'm trying to "estimate" the dividend yield for Disney (NYSE:DIS). Let's pretend stock price will stay at \$57 and the tax rate is 1%. Is it really the case that after 3 years with this stock the ...
2k views

### What does the “SEC 30-Day Yield” mean for a Bond ETF?

I'm currently a student awaiting admission into grad school and have about \$10,000 in a Scott Trade account ready to invest. Because I'll be using the money to pay for moving expenses and anything ...