Yield to maturityAgency theoryIt is argued that firms make the choice of the term to maturity of a new corporate bond issue so as to minimize the aggregate of the agency costs and transaction costs. Issuing bonds with longer terms to maturity will allow firms to reduce the transaction costs ...
Key Words and Phrases Associated with Corporate Bonds: The basic financial terms of a corporate bond include its price, face value (also called par value), maturity, coupon rate, and yield to maturity. Yield to maturity is a widely used measure to compare bonds. This...
A BBB-rated corporate bond has a yield to maturity of 9%. A U.S. Treasury security has a yield to maturity of 7.5%. These yields are quoted as APRs with semiannual compounding. Both bonds pay semiannual coupons at an annual rate of 8.4% and have five years to maturity. Consider two ...
Bonds have a low chance of capital appreciation. What you should expect to earn on a bond is its yield to maturity. In contrast, a stock could continue to rise for decades, earning much more than a bond could. Price fluctuations (unlike CDs). While bond prices generally fluctuate less tha...
The yield to maturity for a semiannual-pay, 10 -year corporate bond is 5.25 percent. What is the bond's annual equivalent yield() A. 5.00%. B. 5.25%. C. 5.32%. 相关知识点: 试题来源: 解析 C The annual equivalent yield is equal to [1 + (nominal yield/number of payments per ...
This study analyzes the influence of the variable Debt Equity Ratio (DER), Maturity, Firm Size and Bond Rating on the Yield To Maturity (YTM) of corporate bonds. The study population consists of corporate bonds traded on the Indonesia Stock Exchange period 2016-2018. The sample selection techni...
Chapter 8深入解析：利率与债券估值 8.1 债券基础与定价1. 基本要素 面值 (Par value): 债券的初始价值息票利率 (Coupon rate): 定期支付利息的比率利息支付 (Coupon payment): 按照息票利率定期发放的利息到期日 (Maturity Date): 债券结束时的日期到期收益率 (Yield to maturity, YTM): 使未来...
The yield to maturity for a semiannual-pay, 10-year corporate bond is 5.25%. What is the bond's annual equivalent yield?A. 5.00%.B. 5.25%.C. 5.32%. 正确答案:C 分享到: 答案解析: The annual equivalent yield is equal to [1 + (nominal yield/number of payments per year)]number of...
8.1 Bonds and Bond Valuation 1、基本概念 (1) Par (face) value 面值 (2) Coupon rate 息票利率 每隔一段时间支付利息的利率 (3) Coupon payment 利息 (4) Maturity Date 到期日 (5)The yield to maturity (YTM)到期收益率 当前市场利率 2、Bond Valuation债券价值 ...
Yield to Maturity (YTM):This refers to the interest rate for equating a bond’s price to its presentcash flowvalue. When the phrase yield to maturityis used, this means it’s assumed that the corporate bond will be held until it matures. Additionally, this term also assumes all interim ...