Sentences with phrase «constant yield to maturity»

Discounts related to commercial paper are amortized on a straight - line basis, which approximates a constant yield to maturity.

In order to avoid this result, the Internal Revenue Code (the «Code») provides that the holder's basis will increase over time based on a «constant yield to maturity» (CYM) method.

In order to determine the constant yield to maturity on a bond, it is necessary to determine a constant discount rate that must be applied to each and every payment on the bond (principal and interest) in order to produce an aggregate value (as of the issue date) that is equal to the issue price of the bond.

Not exact matches

Treasury Yield Curve Rates are commonly referred to as «Constant Maturity Treasury» rates, or CMTs.

The new fund will use what are called constant maturity swap curve caps to bet on both a steepening of the US yield curve and an increase in curve volatility.

1 -, 3 -, 5 - Year CMT — Average yields on U.S. Treasury securities adjusted to a constant maturity of 1, 3, or 5 year (s) correspondingly.

Because yield to maturity is the interest rate an investor would earn by reinvesting every coupon payment from the bond at a constant interest rate until the bond's maturity date, the present value of all the future cash flows equals the bond's market price.

Alternatively, a holder can elect to accrue market discount using the same method that is used for OID (i.e., using a constant yield - to - maturity method).

Flat Yield Curve - This curve indicates the yields of bonds with different maturities are relatively constant, and is seen when interest rates are expected to decline moderately but offset by positive term premium.

The investment seeks to track the price and performance yield, before fees and expenses, of the UBS Bloomberg Constant Maturity Commodity index.

3ARM Information: ARM Index - Weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board.

According to the Federal Reserve Board, on September 1, 2010, the five - year constant maturity Treasury (CMT) yield was 1.41 %.

The interest rate will be adjusted & calculated on the origin of the average yield on U.S. Treasury securities adjusted to a constant maturity of one year, plus an additional fixed margin.

These sheets calculate the (annual) figures for: • Accrued interest that needs to be returned to the seller after settlement • Net bond basis • Original discount or premium • Annual (pro-rated) amortization of bond premium using both Constant Yield and Straight Line amortization, as required by the IRS • End - of - year basis • Annual coupons • Estimates of taxes due on coupons • Estimates of differences in taxes paid vs. not amortizing premiums • Capital loss or gain upon sale before maturity