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2
votes
3answers
60 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?
0
votes
1answer
22 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 ...
3
votes
1answer
64 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 ...
0
votes
1answer
45 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 ...
2
votes
1answer
51 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?
1
vote
2answers
47 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 ...
-1
votes
2answers
101 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 ...
2
votes
2answers
168 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 ...
15
votes
1answer
2k 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 ...
1
vote
2answers
51 views

Please help me understand reasons for differences in Government Bond Yields

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 ...
3
votes
2answers
179 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 ...
0
votes
1answer
109 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 ...
-2
votes
1answer
49 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 ...
3
votes
2answers
196 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?
4
votes
2answers
160 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. ...
5
votes
1answer
1k 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?
7
votes
2answers
132 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. ...
0
votes
1answer
1k 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 ...
3
votes
1answer
142 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 ...
4
votes
2answers
4k 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 ...
1
vote
1answer
215 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 ...
2
votes
2answers
2k 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 ...
1
vote
1answer
700 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.
7
votes
1answer
881 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 ...
3
votes
1answer
190 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 ...
4
votes
1answer
1k 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 ...