When the yield to maturity is greater than the current yield, it indicates the bond is selling at a discount (its price is less than par value). On the other hand, if the yield to maturity is lower than the current yield, it is selling at a premium (its price is higher t...
Yield to Call,Yield to Put, orYield to Maturity Formula BondPrice = C1 (1+YTM)1 + ... + Cn (1+YTM)n + P (1+YTM)nor, expressed in summation, or sigma, notation:B = n ∑ k=1 Ck (1+YTM)k + P (1+YTM)nNote that if the bond pays a semiannual coupon, as most US ...
The tool willalsocompute yield to maturity, but see theYTM calculatorfor a better explanation plus the yield to maturity formula. Bond Yield Calculator Table of Contentsshow ▼ Current Yield to Maturity Calculator Inputs Current Bond Trading Price ($)- The price the bond is trading at today. ...
Yield to maturity (YTM)is the total return earned on a bond, assuming that the bond owner holds the bond until the maturity date. For example, let's assume that the 6% coupon rate bond purchased for a discount of $900, will mature in the 10 years. To calculate YTM, an investor makes...
FormulaYield to maturity can be calculated by solving the following equation for YTM:P0 = c × (1 + YTM/m)−(n×m) + F m YTM/m (1+YTM/m)(n×m)Where P0 is the current bond price, c is the annual coupon rate, m is the number of coupon payments per year, YTM is the ...
Answer to: Determine current yield and the approximate yield to maturity for a 4.75%, $50,000 coupon bond that is selling for $52,600 and matures...
C. the yield to maturity. 正确答案:A 分享到: 答案解析: The formula for current yield is the annual cash coupon payment divided by the bond price. 统计:共计32人答过,平均正确率81.25% 问题:进入高顿部落发帖帮助相似题型热门网课更多>> 论坛精华更多>> 题库APP下载更多>> 关注我们 微信号:...
Current Yield = Annual Coupon Interest/Bond Price Where, Annual coupon interest is the total coupon payment received by the bond annually Bond price is the market price of the bond Let’s take a $1,000 par bond, with 8% coupon and 7 years to maturity. The price of the bond is $1,...
The current bond yield calculation formula is as follows: Current bond yield = Annual interest payment / Clean price Example To calculate the current yield of a bond with a face value of $1,000 and a coupon rate of 4% that is selling at $900 (clean, not including accrued interest), ...
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