Sentences with phrase «use yield to maturity»

While there are several different types of yield calculations, for the purposes of this article, we will use the yield to maturity (YTM) calculation.

Don't use yield to maturity as a perfect measure of your returns.

The fund's current yield is calculated over a trailing 30 - day period using the yield to maturity on bonds and / or the dividends accrued on stocks.

The fund's 30 - day standardized yield is calculated over a trailing 30 - day period using the yield to maturity on bonds and / or the dividends accrued on stocks.

Not exact matches

The yield curve - the plot of all of the yields on Treasury securities of maturities from four weeks to 30 years - is used as a signal of economic health of the economy.

debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions

Backtests of an indicator using the yield curve (which is anything but random, owing to Federal Reserve control of the short end) show that some value can be added using this indicator to adjust maturities.

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.

The example uses current yield rather than yield - to - maturity for the sake of simplicity.

Yield to maturity is the measurement most often used, but it is important to understand several other yield measurements that are used in certain situatYield to maturity is the measurement most often used, but it is important to understand several other yield measurements that are used in certain situatyield measurements that are used in certain situations.

Note: The S&P / LSTA U.S. Leveraged Loan 100 Index comparison uses yield - to - maturity.

For this reason, yield to maturity may only be calculated through trial - and - error, by using a business or financial calculator or by using other software, like Investopedia's own Yield To Maturity Calculyield to maturity may only be calculated through trial - and - error, by using a business or financial calculator or by using other software, like Investopedia's own Yield To Maturity Calculatoto maturity may only be calculated through trial - and - error, by using a business or financial calculator or by using other software, like Investopedia's own Yield To Maturity Calmaturity may only be calculated through trial - and - error, by using a business or financial calculator or by using other software, like Investopedia's own Yield To Maturity CalculYield To Maturity CalculatoTo Maturity CalMaturity Calculator.

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.

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).

Yield to maturity is a basic investing concept that is used to compare bonds of different coupons and time until maturity.

Yield to maturity is a basic investing concept used by investors to compare bonds of different coupons and times until maturity.

To compare the two in the current market, and to convert older bond prices to their value in the current market, you can use a calculation called yield to maturity (YTMTo compare the two in the current market, and to convert older bond prices to their value in the current market, you can use a calculation called yield to maturity (YTMto convert older bond prices to their value in the current market, you can use a calculation called yield to maturity (YTMto their value in the current market, you can use a calculation called yield to maturity (YTMto maturity (YTM).

Laddering is a strategy of using CDs with different maturity dates to provide liquidity while still enjoying the higher yield available from longer - term CDs.

Use the annually maturing proceeds to purchase a CD at the higher - yielding tail end (six - year maturity) of your ladder.

Yield to maturity (YTM) is used for OID bonds and takes into account the bond's current market price, par value, coupon interest rate and time to maturity.

A term that is commonly used is the yield - to - maturity (usually abbreviated to YTM).

High - yield corporate bonds may also be used to gain modest exposure to higher - yielding maturities, though the portfolio is unlikely to hold a large percentage of high - yield bonds, especially those of longer duration.

The current yield is used to calculate other metrics, such as the yield to maturity and the yield to worst.

This year investors who followed the MFIP were led to shorten maturities (therefore lowering their interest - rate risk) and also to use higher - yielding corporate bonds rather than Treasuries or mortgage - backed securities (thereby keeping lower duration and less interest - rate risk).

This unique strategy uses options to participate in market gains, plus hold - to - maturity corporate high - yield fixed income ETFs as a buffer to help protect against downside risk.

Captures high yields from longer maturities and uses lower maturities to help minimize interest rate risk.

This is also printing money * but it is used to buy debt instruments at different parts of the yield curve, of different maturities.

Corporate bonds offer additional yield, and the iShares 1 - 5 Year Laddered Corporate Bond (CBO) uses a time - honoured strategy to smooth out interest rate risk: it holds one fifth of its portfolio in five different «rungs,» with maturities of one to five years.

One potential solution is to consider using other sources of yield outside of traditional bonds where duration and maturity are not factors.

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

I use a minimum yield - to - maturity screen of 1 %, but most bonds I buy yield significantly more.