Effective Yield vs. Yield-to-Maturity (YTM) The yield-to-maturity (YTM) is the rate of return earned on a bond that is held until maturity. To compare the effective yield to theyield-to-maturity (YTM), convert the YTM to an effective annual yield. If the YTM is greater than the bon...
题目 A bond has a yield-to-maturity of 8%. If its effective duration is 7.41 years, a 25 basis point increase in rates will result in an approximate: A:7.41% decrease in price. B:1.85% decrease in price. C:12.85% increase in price. 相关知识点: 试题来源: 解析 B 反馈 收藏 ...
A bond has a yield-to-maturity of 8%. If its effective duration is 7.41 years, a 25 basis point increase in rates will result in an approximate:A:7.41% decrease in price.B:1.85% decrease in price.C:12.85% increase in price. 正确答案:B 分享到: 答案解析: 暂无解析 统计:共计0人答...
What Is the Discount Yield? This is the annualized return on a discount bond, such as aTreasury bill, calculated as the difference between the face value and the purchase price, divided by the face value and adjusted for the number of days to maturity.3 What Is the Yield to Maturity? Th...
Yield to maturity (YTM): 8% Yield differential: 1% The bond effective duration calculation requires four steps: Calculate the coupon per period. The first step is to calculate the coupon per period using the following formula: coupon per period = face value × coupon rate / frequency As this...
A Treasury bill, with 45 days until maturity, has an effective annual yield of 12.50%. The bill's holding period yield is closest to:A. 1.57%.B. 1.46%.C. 1.54%. 正确答案:B 分享到: 答案解析: The effective annual yield (EAY) is equal to the annualized holding period yield (HPY) ...
Effective yield is a financial metric that measures the interest rate – also known as the coupon rate – return on a bond.
An option-free bond has a market price and par value equal to $1000. For small changes in the yield of this bond, its price will change one dollar for every basis point change in the yield. What is the duration of the bond A. ...
" which is the rate of return an investment must earn to be worthwhile. For instance, the U.S. Treasury bond rate can serve as the discount rate in the PV calculation. For example, an investor might decide he must earn at a minimum a 2 percent yield for each of two years to ...
In lending, the effective annual interest rate might refer to an interest calculation in which compounding occurs more than once a year. In capital finance and economics, the effective interest rate for an instrument might refer to the yield based on the purchase price. ...