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.
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.
Zero - coupon bonds do not have re-occurring interest payments, which makes
their yield to maturity calculations different from bonds with a coupon rate.
Not exact matches
Two
yield calculations are generally evaluated when it comes
to selecting callable bonds for a portfolio:
yield to maturity and
yield to call.
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.
Two
yield calculations are generally evaluated when it comes
to selecting callable bonds for a portfolio:
yield to maturity and
yield to call.
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
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
to convert older bond prices
to their value in the current market, you can use a calculation called yield to maturity (YTM
to their value in the current market, you can use a
calculation called
yield to maturity (YTM
to maturity (YTM).
Yield -
to - call is the same
calculation based on the total coupon interest payments remaining between now and the first call date (rather than the
maturity date) as well as the difference between today's market value (price) and the call price.
While there are several different types of
yield calculations, for the purposes of this article, we will use the
yield to maturity (YTM)
calculation.
Bonds and other fixed income products tend
to be classified by their
maturity dates, as it is the most important variable in the
yield calculations.
When evaluating at a bond, there are two primary
yield calculations: the current
yield and the
yield to maturity.