The yield to maturity on a given bond denotes the rate of return required by investors.Answer and Explanation: The calculated yield to maturity value is 8.225%. The yield to maturity (i) represents the discount rate for which the sum of the p...
百度试题 题目What is the yield to maturity (YTM) of a 20-year, U.S. zero-coupon bond selling for $300? A. 3.06%. B. 5.90%. C. 6.11%. D. 7.20%. 相关知识点: 试题来源: 解析 C 略 反馈 收藏
百度试题 题目What is the bond's yield to maturity (YTM)? A. 10.34%. B. 10.55%. C. 9.26%.相关知识点: 试题来源: 解析 A 略 反馈 收藏
Example of the Issue Price of a Bond Let’s say that ABC Corporation decides to issue abondwith aface valueof $1,000, an annualcoupon rateof 5%, and amaturityperiod of 10 years. This means thebondwill pay $50 ininteresteach year (5% of $1,000) for the next 10 years, and then ...
YTM = The yield to maturity of a bond n = The frequency of compoundingEffective Duration Effective duration has the capability of embedding callable options. It considers the bond's price fluctuations in terms of YTM. That is, the bond calculates the fluctuations in the expected cash flows.Effe...
Face amount on bond ($) Number of years to maturity (1 to 40) Coupon rate (-12% to 12%) Today's market rate (-12% to 12%) Desired yield to maturity (-12% to 12%) CalculateThis information may help you analyze your financial needs. It is based on information and assumptions prov...
What is amortization of a bond? When abond is amortized, the principal amount, also known as the face value, and the interest due are gradually paid down until the bond reaches maturity. Using anamortization schedule, the bond’s principal is divided up and paid off incrementally, usually in...
The duration of a bond measures how responsive the bond's price is with respect to changes in interest rate. The longer the duration of a bond, the higher the interest rate risk of the bond.Answer and Explanation: The duration of the...
Yield to maturity (YTM) is the total return expected on a bond if the bond is held until maturity.
The effective interest rate of a bond is usually the market interest rate and the bond’s yield-to-maturity (as opposed to the interest rated stated on the face of the bond). The effective interest rate of a bond is the rate that will discount both the bond’s future interest payments...