All Questions
8 questions
2
votes
1
answer
312
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What is the correct formula for Bond Yield?
Taking an introductory investment course, was following up on bond yields.
I thought the yield is calculated as follows (sorry for some reason LaTex formatting doesn't work - so inserting an image):
...
- 197
1
vote
2
answers
77
views
Compute coupon of treasuries
How do you compute coupon starting from yield and price? Since yield is coupon / par, which is 2 / 100 in this case, would it just be yield * price, 0.01906 * (102 + 1 / 32) with the data below? ...
- 11
0
votes
1
answer
360
views
How to calculate the new price of a bond if its YTM increases?
I'm trying to calculate the current price of a corporate bond one year after its YTM has changed.
A corporate bond was issued at 01/01/2010, has the following caracteristics:
A face value of 5000$.
...
- 103
2
votes
3
answers
237
views
How does a bond's coupon rate differ from its market yield rate?
I'm trying to understand how bonds work and am confused by coupon rate vs market yield rate.
Suppose company Foo issues a bond with a face value of $1 million, a 4% annual coupon rate payable semi-...
- 153
0
votes
2
answers
1k
views
How to calculate the price of a bond based with a yield to Maturity, term and annual interest?
I'm trying to help my nephew with finance but I'm not sure if I fully understand if I have all the necessary details to answer this question.
Here's the question:
Say you want to purchase a 7%, 15yr ...
- 582
7
votes
1
answer
1k
views
Thorough Description of Yield to Maturity?
After some studies for the last month, I have encountered a concept that has just completely eluded me, and that is Yield to Maturity (YTM).
Can someone explain the purpose and reasoning behind this ...
- 215
5
votes
3
answers
24k
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, ...
- 187
1
vote
1
answer
2k
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.
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