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| | Yield to Call and to Maturity as supplied by EagleTraders.com |
 | | As an alternative to yield to maturity, it may be appropriate to calculate yield to first call date, especially in the case of |
 | | Yield to maturity may be precisely determined mathematically, but the computation may be complex and time-consuming, and so bond yield tables, in a wide range of coupon rates, maturities, and prices, are available from publishers. |
 | | Thus, if a bond is bought at 80 ($800 per $1,000 bond) pays 4% interest annually, and has 10 years’ remaining maturity at the time of purchase, the approximate yield to maturity is 6.67% (interest of $40 annually, plus annual accretion of $20, divided by average principal of $900). |
| www.eagletraders.com /advice/securities/yield_to_call.htm (0 words) |
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