Sentences with phrase «determining yield to maturity»

Not exact matches

Their opinions of that creditworthiness — in other words, the issuer's financial ability to make interest payments and repay the loan in full at maturity — is what determines the bond's rating and also affects the yield the issuer must pay to entice investors.

Yield to maturity is very similar to current yield, which divides annual cash inflows from a bond by the market price of that bond to determine how much money one would make by buying a bond and holding it for one Yield to maturity is very similar to current yield, which divides annual cash inflows from a bond by the market price of that bond to determine how much money one would make by buying a bond and holding it for one yield, which divides annual cash inflows from a bond by the market price of that bond to determine how much money one would make by buying a bond and holding it for one year.

Like any calculation that attempts to determine whether or not an investment is a good idea, yield to maturity comes with a few important limitations that any investor seeking to use it would do well to consider.

The bond's coupon and term to maturity are used in determining the bond's market price and its yield to maturity.

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.

the relationship between interest rates and time, determined by plotting the yields of all or as many bonds of similar credit quality (eg: Treasuries or AA - rated Corporates), against their maturities; yield curves typically slope upward since longer maturities normally have higher yields, although it can be flat or even inverted; the Fixed Income Search Results Scattergraph shows several smoothed yield curves for different fixed - income product types and credit qualities; these are based on bonds that Fidelity recognizes and are not equal to the entire universe of bonds, which is significantly larger than the number of bonds offered by Fidelity on any given day

Their opinions of that creditworthiness — in other words, the issuer's financial ability to make interest payments and repay the loan in full at maturity — is what determines the bond's rating and also affects the yield the issuer must pay to entice investors.

In our analysis, quarterly yield differences (after MER) and maturity differences between XSB and XBB were examined to determine when a switch from one to the other would have made sense (i.e. would have given us an additional 0.15 % of annual expected yield for each additional year of term risk).

So, when looking at a muni bond offered for sale on the secondary market, the investor must look at the price of the bond, not just the yield to maturity, to determine whether tax consequences will affect the return.

Therefore, when analyzing yields for muni bonds offered on the secondary market, the yield - to - maturity figure is usually sufficient to determine an expected return.

Bond Yield Calculator: Determine before - and after - tax bond yield to maturity (or bond yield to call) down to a very high level of accuracy (third decimal plYield Calculator: Determine before - and after - tax bond yield to maturity (or bond yield to call) down to a very high level of accuracy (third decimal plyield to maturity (or bond yield to call) down to a very high level of accuracy (third decimal plyield to call) down to a very high level of accuracy (third decimal place).

The advantage of a semi-annual interest payment is also more attractive to some investors, not to mention the fact that the yield at maturity is known at the time of purchase (if the bond is held until maturity and rates determined at the time of issuance).