Sentences with phrase «yield to maturity»

Including fees received at closing, the loan has a blended yield to maturity of approximately 13 percent.

That's where this ETF is different: it will make quarterly distributions based on the fund's average yield to maturity, which is expected to be about 1.6 %.

A bond's yield to maturity calculation provides you with the total return you would receive if the bond was held through its maturity date.

Only the bond yield to maturity calculator part of the spreadsheet has its formulas intact.

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

The total return you receive by holding a bond until it matures is measured by yield to maturity.

Yield to maturity considers the bond's current market price, par value, coupon interest rate, and time to maturity in order to calculate a bond's return.

In addition, the totals of principal and interest are discounted to their present value based on the actual yield to maturity.

You will also frequently see a bond's yield to maturity listed next to its purchase price.

Yield to maturity incorporates not just the periodic coupon payments but also the time to maturity and the principal amount you get back when the bond matures.

As the word «flat» suggests, this yield curve is a shape in which the short - and long - term yields to maturity are similar to each other.

A bond's yield to maturity calculation provides you with the total return you would receive if the bond was held through its maturity date.

As mentioned, if a higher yield to maturity is due to higher duration risk, then this bond will be more subject to interest rate risk.

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.

Since the mathematics can be daunting even for expert investors, numerous financial calculators and websites can calculate yield to maturity for you — as long as you know the bond's par value, interest rate, current price, number of payments per year and time to maturity.

You can visit the Bloomberg web site to find the current yield to maturity in the secondary market.

For maximum accuracy in calculating yield to maturity, input how many days are in the year into cell B11.

XBB makes monthly distributions, with yield to maturity projected at 2.3 %.

PIMCO lists an estimated yield to maturity of 3.78 %.

If you are planning to hold a bond to maturity, then Yield to Maturity is the metric that you care about.

If a tax - exempt bond is purchased at a premium (i.e., at a price in excess of the face amount of the bond), whether at original issue or in the secondary market, the bond premium is amortized over the remaining term of the bond using the same constant yield to maturity method discussed above under «Original Issue Discount.»

But since yield to maturity factors in capital losses on bonds that are trading above par and there's many years until most of those bonds mature, I don't think that's the number to focus on either.

ZAG has an Average Duration of 7.36 years with an effective yield to maturity of 2.59 %.

Conservative investors will find bonds maturing in seven years, issued by AA - rated companies such as International Business Machines (IBM), Coca - Cola (KO), Colgate Palmolive (CL), and PepsiCo (PEP), that offer yields to maturity well - north of 2 %.

If you hold more shares because you can't stand the prospect of a 1 % yield to maturity from gilts, I think that's understandable.

Yield to maturity = -LCB- Coupon rate + (Face value — Purchase price / years until maturity)-RCB- / -LCB- Face value + Purchase price / 2 -RCB-

Yield to maturity assumes that all interest payments are received from the date of purchase until the bond reaches maturity, and that each payment is reinvested at the same rate as the original bond.

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 (YTM).

I am not at all convinced that Treasuries with a maturity much past 5 years will provide adequate yields to maturity, or even positive real returns, as we move through this decade.

The complex process of determining yield to maturity means that it is often difficult to calculate a precise YTM value.

Though yield to maturity represents an annualized rate of return on a bond, coupon payments are often made on a semiannual basis, so YTM is often calculated on a six - month basis as well.

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.

For expected bond returns, it's reasonable to simply look at the current yield to maturity of the DEX Universe Bond Index, and Justin used an estimate of 2.25 % (nominal).

To get to this «win - win» situation, TAVF had to ignore the market risk it was taking; the Inverse Floaters (it bought at 50) could have sold in the OPMI market at 30 shortly thereafter, even though the Fund had locked in a pretty good minimum yield to maturity.

Now consider a discount bond that pays a coupon of 2 % and has the same yield to maturity of 3 %: now, in addition to the interest payments, you'd net a 1 % capital gain at maturity, and your total pre-tax return would again be 3 %.

The Fund currently holds primarily Treasury Inflation Protected Securities (which currently price in expectations of zero inflation for the next decade or more, while reflecting reasonably high inflation - adjusted yields to maturity).

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.

Because of exposure to developed countries and emerging market countries, ILB's yield to maturity stands at 4.7 %.

MYGA yields to maturity shown for high - band contracts with the MVA option offered by carriers with minimum credit rating according to A.M. Best.

In order for an investor to actually receive the expected yield to maturity, she must reinvest the coupon payments she receives at a 10 % rate.

If a TAM Fund owns a performing loan providing a double digit yield to maturity, market price is less relevant than owning a non-dividend paying common stock.

Filed Under: Investing Tagged With: Bond, Bond Fund, Bond Funds Performance, Bond Portfolio, Yield To Maturity Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.

If the estimated yield to maturity proves accurate, PIMCO should return 3.18 % net of fees to investors.