Questions tagged [yield]
The yield tag has no usage guidance.
128
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How to think about yield for a annuity of fixed number of years which pays a predefined cashflow each year
Let's say I have an offer to pay $1000 now and for the next 20 years, I will receive the following payments:
Year 1: $10
Year 2: $20
Year 3: $30
Year 4: $40
Year 5: $50
Year 6: $60
Year 7: $70
Year 8: ...
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Why MBS has lower YTM than treasury bonds?
I just checked, VMBS (Vanguard MBS) has yield of 3.73%, but VGLT (Vanguard government long term bond) has yield of 5.08%. I thought MBS is riskier and would require higher YTM by the market.
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What drives a yield curve shape?
I understand there are many factors that affect yield curve shape, let me help understand one.
One is that 30y rate is an average 2y rate for the next 30y, with some additional premium. That premium ...
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Understanding Implications of Return of Capital?
There is an ETF/fund I was looking at and I noticed a curious mix of what goes into their regular "dividend" payout. The amount consists of dividend income + long/short capital gains, and ...
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How to read CDs: price vs yield vs bid vs ask?
I'm trying to understand CDs by comparing the two:
NAME
CLOSING PRICE
CLOSING YIELD
CURRENT BID YIELD
CURRENT BID PRICE
CURRENT ASK YIELD
CURRENT ASK PRICE
Mountain Commerce Bank
99.68
5.694%
99....
- 298
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0
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What is the difference between 7-day yield and gross 7-day yield of a money market fund?
Federated Hermes Government Reserves Fund Class A (GRAXX) has a 7-day yield of 3.96 while it has a gross 7-day yield of 4.84. I wonder what is the difference between two attributes and how are these ...
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What's up with banks closing down their high yield savings accounts and incentives lately?
We had been keeping our cash savings in a Purepoint high yield savings account for the past few years, until we got this email from them a couple months ago:
"We’re reaching out to let you know ...
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How is the yield of this particular bond calculated?
I am looking at this particular bond of coinbase company via Interactive Brokers website.
Coinbase Bond ISIN : USU19328AA89
The rate of the bond is 3.4 so at the ask price of the bond at 62 the yield ...
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Why is YTW (Yield-to-Worst) not available for some callable bonds?
E.g., I am looking at 67765QDG8 ("Oh St Wtr Dev Auth REV 5% 06/01/2023") on Schwab. It is callable but the yield to worse isn't indicated:
Bond details: https://i.stack.imgur.com/GNt20.jpg (...
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If US Treasuries at yielding 4-5% right now, why can't I find an ETF that yields that amount?
If US Treasuries at yielding 4-5% right now, why can't I find a 1 month US Bond ETF or 6 month US Bond ETF that yields 4-5%? The best I can find is SGOV but it only yields 2%.
Picture of US yields on ...
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Where can I find the indicative yield of soon-to-be-issued Treasury bonds on Charles Schwab?
In Vanguard, one may see the indicative yield of soon-to-be-issued Treasury bonds on https://personal.vanguard.com/us/FixedIncomeTrading:
Where can I find the indicative yield for soon-to-be-issued ...
- 11.2k
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How to think about ROI vs yield
Something I have been struggling with recently is how to evaluate investments based on yield vs ROI considerations. The reason I struggle with it is that I get conflicting answers where the investment ...
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How can one compare the yield of a municipal money fund with the yield of a municipal bond?
Let's consider the following municipal money fund and the following municipal bond:
The Schwab Municipal Money Fund (Investor Shares) (SWTXX) discloses a 7-day yield (with waivers) as of 02/28/2023 ...
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What accounts for the difference in yield to maturity (YTM) between brokered CDs and US Treasuries?
Looking at the Charles Schwab table below dated 2023-02-24 on the yield to maturity (YTM) for different brokered CDs and bonds, I see that for when the maturity is 1 year or higher, brokered CDs have ...
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Treasury Yields -- Quoted on an Investment Basis vs. Discount Basis
I'm looking at the St. Louis Fed website's historical data for the 1-year treasury. There are two different but similar pages. One is titled:
1-Year Treasury Bill Secondary Market Rate, Discount Basis
...
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How is the Price/Yield Duality Affected By Time?
A rise in interest rates causes a rise in bond yields which means their price goes down. And the opposite, of course.
What I'm trying to understand is how the price of an ETF will change after the ...
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Is the US market really expecting less than 3% yearly inflation over the next 5 years?
Several people in my family are fearful of upcoming high inflation, perhaps due to the relatively high US inflation figures reported in the last few months (8%+). They think that the US inflation rate ...
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Yield curve to price bonds
I am having a hard time finding books/materials that would teach yield curve pricing using real-world problems/examples
I would like to understand if can I use the below treasury yield data (I believe ...
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What would be the instrument/index with the most historical data available for something similar to TLT aka a bonds fund? [closed]
I would like to have as much historical data as possible regarding a bonds fund performance similar to the iShares 20+ Year Treasury Bond ETF (TLT).
For now I have this source but it goes back to only ...
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Proper Way To Price a Bond Paying a Semi-Annual Coupon
Let's say you have a 10-year bond with a $100 face value that with a coupon rate of 10%, paid semi annually. The bond is currently price at $105. Which is the proper way of calculating the yield to ...
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Why don’t broker-dealers borrow against their clients’ stock holdings instead of lending them?
From what I understand, a common business line of brokerages is lending out the shares of their clients while they are sitting idly in their accounts. Average borrow rates of blue-chips are around 0....
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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):
...
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249
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How do I calculate the performance of a stock investment in the presence of dividends, additional investment and partial sales?
What is a single metric I can use to calculate the performance of a stock investment in the presence of dividends, additional investment, and partial sales? Such a metric should be comparable across ...
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Need help understanding bond yield outliers
I was looking at bond yields on Fidelity and noticed a few outliers.
The tables below show the 'Highest' and 'Median' yields.
Note the outliers - Agency/GSE 10yr and Corp AAA 2yr - where the highest ...
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Why are long term bonds subjected to a higher volatility, as well as higher yield than short term bonds?
Why are long term bonds subjected to a higher volatility, as well as higher yield than short term bonds? (Assuming normal yield curve). Say, I have 2 investment options and my investment horizon is 2 ...
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Why is there a sell off of US bonds if interest rates in the US are currently rising?
My understanding is that as interest rates go up, the yield offered by bonds also increases (in response).
If the yield of bond increases, then why are people selling bonds?
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Why people prefer VRE instead of HHL.B with higher dividend yield
Good day , I am new to stock market , so I am sorry in advance for my poor knowledge. My Canadian financial advisor told me that secure way to get dividends from stocks is to buy dividend ETFs ...
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Why do raising short-term yields indicate that the economy is about to enter a recession?
Below is the excerpt from the article Term Structure Of Interest Rates
Downward sloping — short-term yields are higher than long-term yields. Dubbed as an "inverted" yield curve and ...
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Why do we have *daily* series of T-bill yields?
I understand that each week the US Treasury issues new T-bills at different maturities (1-month, 3-months, 1-year, etc). As far as I understand, this issuance happens every Tuesday. After the auction, ...
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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? ...
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Where is the share price located once Apple releases its Form 10-K? Using for dividend yield calculation and need the price they used
I need to find dividend yield for Apple at the release of their 2020 annual report, Form 10-K. That's it. I can't find it anywhere.
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Positive movement vs negative movement of bond market yield
In the example on this page, a yield was issued at a yield of 7.18% at the beginning of a year and was forecasted to have a yield of 6.8% at the end of a year.
The resulting value gain from the ...
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Ask & Bid yield calculation problem
Does anyone know how the ask and bid yields are calculated on this corporate bond?
I tried to use BEY calculation but I keep arriving at different answers.
Does anyone know what the $500K means?
If ...
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TNote 10yr Futures YTM vs market yield?
I understand how to calculate the yield on a 10 yr TNote based on face, price & coupon.
I don’t understand why the yield (and price) on a futures contract about to expire is so different than the ...
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How to calculate the new price of a bond if its YTM increases?
I'm trying to calculate the current price of a corporate bond one year after its YTM has changed.
A corporate bond was issued at 01/01/2010, has the following caracteristics:
A face value of 5000$.
...
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What is the best way to interpret changes in Treasury yields?
My question is quick and simple. However, I would like to use this answer to further my understanding of bonds and yields.
If the YTM on a 10yr Note yesterday was 1.00% and the YTM on the same 10yr ...
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Logic behind inverse relationship between bond rate and interest rate
I've been reading that there is an inverse relationship between fixed-rate bonds and interest rate. The explanation behind the reasoning is that as interest rates move, the bond has to compete with ...
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Performance of an investment when contribution values are variable
Every two weeks in 2020 (thus, 26 times), I've contributed some money (usually about $200, but sometimes more or less) to a bond fund. The starting value was $21000 and the current value is $28500. ...
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Is using the Compound dapp a safe/effective way to earn interest?
Gonna preface this with saying I am not sure precisely on what exchange this should go. The question is more about DeFi than it is about Bitcoin, so the Bitcoin exchange is not the right place. The ...
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Calculating bond duration and price change when yield changes
I've been working on this forever and I'm still not sure if my answers are correct. My question is:
A 10 year bond with a face value of $1000 paying semi-annual 7% coupon. Bond is paying 7% YTM.
...
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Difference between 7-Day Yield and Average Annual Total Returns?
I'm looking at "FIDELITY GOVERNMENT MONEY MARKET" and there's two numbers: 0.01% 7-Day Yield and 0.75% Average Annual Total Returns. I don't understand the difference between these two ...
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Given two similar bonds, is the one with a higher yield to maturity (YTM) always a better investment?
Consider two bonds that have the same issuer, seniority, credit rating, and maturity date. My question is about the comparability of their yield to maturity (YTM): if one bond has a higher YTM the ...
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What drives long duration US Treasury Bond ETF prices?
I am looking at TLT, for example, a long duration (with average maturity around 25 years) bond ETF. I noticed that the fed funds rate (or the "interest rate" from federal reserve) has been ...
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Why is a put on yields equivalent to a call on bonds?
Nassim Taleb makes the following assertion in Dynamic Hedging:
A put on yields is a call on bonds, a matter of confusing importance.
But I struggle to understand why that is the case.
If I buy a put,...
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Difference between the Interest rate of bond and the interest rate of central bank
Does the increase or decrease of the Interest rate (coupon rate) of bonds have the same effect as rising or falling interest rate of the central bank on the economy? In other words when we say that ...
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How to read/decipher the percent % in a bond's interest versus coupon rate question or example
I was studying about bonds, more so accreted/coupon bonds that were discounted. As far as I know and believe to be true is that when a question says:
1) Q. "Mr. Dancer purchases a 5-percent ...
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Net Bond Coupon/Yield
I just wondered on how one can properly get the Net Bond Yield/Coupon given that you had some "trading" that happened.
Suppose, I have a group of bonds (say some Treasury bonds).
I acquired a 100 Par ...
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What determines the interest rates of government bonds?
It's not clear to me how the interest rate of a specific government bond changes. I would like to make a comparison with cryptocurrency exchanges.
Consider, for example, the price of bitcoin on ...
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Why do bond & treasury yields drop as more people invest in them?
I thought bond and treasury yields were supposed to be stable till maturity date.
Yet we often see reports like this:
Market upheaval intensified Friday as stocks and oil prices tumbled,
while ...
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Help to understand money market fund total return
Take Schwab money market fund as an example -
On the page of SWVXX, the following information is listed -
yields: 7-day yield (without waivers) - 1.44%
net expense ratio: 0.34%
returns (annualized): ...
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