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Topic: Yield to maturity


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YTM

  
  Yield to maturity - Wikipedia, the free encyclopedia
Yield to maturity (YTM) is the internal rate of return on cash flows of a fixed income security, often a Bond, if the security were to be held until maturity.
The calculation of YTM is identical to the calculation of internal rate of return.
If a bond's current yield is less than its YTM, then the bond is selling at a discount.
en.wikipedia.org /wiki/Yield_to_maturity   (339 words)

  
 Yield to Maturity   (Site not responding. Last check: 2007-11-04)
The yield to maturity on a bond is the rate of return that an investor would earn if he bought the bond at its current market price and held it until maturity.
YTM = the yield to maturity on the bond, and
Find the yield to maturity on a semiannual coupon bond with a face value of $1000, a 10% coupon rate, and 15 years remaining until maturity given that the bond price is $862.35.
nalu.hpu.edu /mlane/BusinessFinanceOnline/BV/YTM.html   (165 words)

  
 Yield (finance) - Wikipedia, the free encyclopedia
The relationship between yields and the maturity of instruments of similar credit worthiness, is described by the yield curve.
The yield of a debt instrument is generally linked to default probability of the issuer.
Inflation is linked to the yield in the sense that fears of high inflation in the future would mean that investors would ask for high yield today.
en.wikipedia.org /wiki/Yield_(finance)   (255 words)

  
 Yield to maturity: Facts and details from Encyclopedia Topic   (Site not responding. Last check: 2007-11-04)
Yield to maturity (YTM) is the internal rate of return internal rate of return quick summary:
In finance, the current yield of a bond is the value of its annual coupon payments divided by its current market price....
The dividend yield on a company stock is the companys annual dividend payments divided by its market cap, or the dividend per share divided by the price per...
www.absoluteastronomy.com /encyclopedia/y/yi/yield_to_maturity.htm   (560 words)

  
 Yield   (Site not responding. Last check: 2007-11-04)
A bond's yield to maturity (YTM) is the internal rate of return an investor would achieve if she purchased that bond at its current dirty price and held it to maturity, assuming all coupon and principal payments are received as scheduled.
Yield to first par call is calculated assuming the bond is called on the first date on which it is callable at its par value.
Yield to worst is the minimum yield obtainable based on all possible call dates as well as the possibility that the bond is never called.
www.riskglossary.com /articles/yield.htm   (1345 words)

  
 Yield to Maturity   (Site not responding. Last check: 2007-11-04)
YTM = the discount rate that makes the present value of the bond’s promised payments equal to its price.
Bond is priced at $1067.95, it has a coupon rate of 9% paid semiannually, a par value of $1000, and 10 years to maturity.
Bond is priced at $945.40, it has a coupon rate of 6% paid semiannually, a par value of $1000, and 14 years to maturity.
www.uky.edu /~sjordan/fin450/CH10/sld014.htm   (67 words)

  
 personalfn - Yield Calc
Maturity: The number of years after which the instrument is redeemed.
Yield to Maturity (YTM): Yield to maturity is the discount rate that equates present value of all the cash inflows to the cost price of the government security or bond.
Current yield: Current yield is the return on the government security or bond depending on its purchase price.
www.personalfn.com /fixedincome/activitycentre/ytm.asp   (163 words)

  
 ET Invest - Debt - Concept of Yield to Maturity (YTM)   (Site not responding. Last check: 2007-11-04)
Yield to maturity (YTM) is the annualised rate of return in percentage terms on a fixed income instrument such as bond or debenture, taking into account coupon rates, frequency of payouts and capital gains or losses.
Because, the yield to maturity also takes into account the capital gain (or loss) at the time of maturity.
The YTM is the simplest where the acquisition cost of a bond is at par and coupon payments are effected annually.
www.etinvest.com /content/fds/learn/learnytm.htm   (649 words)

  
 Yield to Maturity
YTM is a measure that only approximates the true return.
YTM is almost always quoted in terms of bond-equivalent yield.
In the absence of taxes, YTM would be an accurate measure of return if the yield curve were flat and interest rates remained constant over the life of the bond.
wfhummel.cnchost.com /yield.html   (569 words)

  
 Yield To Maturity Definition   (Site not responding. Last check: 2007-11-04)
A bond’s yield to maturity is the overall rate of return that the bond earns if purchased at today’s market price and held until its maturity date.
Yield to maturity includes both the yearly interest the investor earns, and the difference between what the investor paid for the bond and the amount the investor receives at the bond’s maturity.
Yield to maturity is often referred to as the yield or basis, so a 5.00% yield to maturity means the same as a 5.00% yield or a 5.00% basis.
www.investorglossary.com /yield-to-maturity.htm   (224 words)

  
 Yield yo Maturity - YTM   (Site not responding. Last check: 2007-11-04)
The rate of return anticipated on a bond if it is held until the maturity date.
YTM is considered a long-term bond yield expressed as an annual rate.
However, because calculating a bond's YTM is complex and involves trial and error, it is usually done by using a programmable business calculator.
investrio.investopedia.com /terms/y/yieldtomaturity.asp   (113 words)

  
 Calculator For Bonds Yield To Maturity   (Site not responding. Last check: 2007-11-04)
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www.yerret.info /bond/calculator-for-bonds-yield-to-maturity.php   (282 words)

  
 yield yield curve percent yield yield to maturity dividend yield yield strength bond yield yield sign yield management ...   (Site not responding. Last check: 2007-11-04)
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yield.rucsdesign.com   (537 words)

  
 Yield to maturity calculator   (Site not responding. Last check: 2007-11-04)
This calculator shows the current yield and yield to maturity on a bond; with links to articles for more information.
Yield to Maturity (YTM): Yield to maturity is the...
Therefore, its yield to maturity should be higher...
calculator.futew.com /index.php?kid=yield-to-maturity-calculator   (254 words)

  
 Yield To Maturity
The yield is annually compounded and the accrual is act/365 (actual).
is the time from the ith cashflow to maturity and T is the time from the value date to maturity.
Note that in all functions, a combination of the Newton-Raphson method and the Bisection Method are used to solve for the yield.
www.fincad.com /support/developerFunc/mathref/YTM.htm   (684 words)

  
 Definition of yield to maturity   (Site not responding. Last check: 2007-11-04)
yield to maturity -- the average annual yield of a fully amortized loan, that is held by an investor for the life of the loan.
The average rate takes into the account the fact that the outstanding principal, and consequently the amount of interest, declines each year until the loan is fully paid.
When the term is used in reference to a bond or other security, it means the average annual rate of return of the security when held to maturity, taking into account discounts or premiums paid when the security is purchased and capital gains or losses.
www.teachmefinance.com /Financial_Terms/yield_to_maturity.html   (143 words)

  
 [No title]
Both bond’s durations decline as interest rates rise, with the duration of the 10-year bond and the 10-year bond about the same at a yield to maturity of 21 percent, just as the percentage price change of a bond will decline at higher yields in response to a given change in interest rates.
Maturity Effect: The longer the maturity of an instrument, all other factors the same, the greater (more negative) the value of Macaulay’s duration.
Applying this to the bond data in Table 1 and using the 7 percent ytm, 10 year bond at the par value of $1,000 and considering a change in rates of 0.5 percent (50 bp), the value of the actual proportional price change is -3.51 percent (Table 1).
www.som.gmu.edu /sba/DurationModel/irmat.doc   (2565 words)

  
 Bloomberg.com: Financial Glossary
Since bond prices and yields move in opposite directions, when the bonds are marked up, they "burn down" the yield, which may violate federal tax rules and diminishes tax revenues.
A yield calculation in which bonds are retired routinely during the life of the issue.
Effective yield of usable or syntheticconvertible bonds determined against the first date at which the warrants can be called.
www.bloomberg.com /analysis/glossary/bfglosy.htm   (837 words)

  
 Path to Investing — Yield: Yield to Maturity   (Site not responding. Last check: 2007-11-04)
The most accurate measure of the long-term yield on a bond investment is its yield to maturity (YTM).
While yield to maturity may be too complex to figure on your own, the current yield to maturity is reported regularly online and in the financial press for the most frequently traded issues.
The reason is that bond funds don’t have maturity dates or fixed interest rates since they hold a portfolio of bonds with different terms and rates.
www.pathtoinvesting.org /categories/investingessentials/yield/yield_031.htm   (141 words)

  
 yield to maturity Definition   (Site not responding. Last check: 2007-11-04)
Yield that would be realized on a bond or other fixed income security if the bond was held until the maturity date.
It is greater than the current yield if the bond is selling at a discount and less than the current yield if the bond is selling at a premium.
Read about the most important fundamental concepts of bonds, including par value, maturity, coupon, nominal and current yield, yield to maturity, and duration.
www.investorwords.com /5370/yield_to_maturity.html   (160 words)

  
 Soybean yield and maturity group/planting date
Since Maturity Group 5 varieties were in the field for a shorter period than Maturity Group 6 and 7 varieties, their use resulted in the best combination of the highest yield and shortest days-to-maturity in nonirrigated late-May plantings.
Yields from and irrigation efficiencies of irrigated April and May plantings of Maturity Group 4 varieties are high relative to all other maturity groups.
Planting varieties that are later than necessary for maximum yield increases days-to-maturity and the concurrent risk of detrimental late-season effects from insects, pathogens, and drought regardless of planting date.
deltafarmpress.com /news/051005-heatherly-soybeans/index.html   (691 words)

  
 Bond Yield to Maturity (YTM) Formula
One thing to notice is that the YTM is greater than the current yield, which in turn is greater than the coupon rate.
If you buy such a bond the yield to maturity you'll get on your investment naturally increases if you can buy it at a lower price: as they say, bond prices and yields "move" in opposite directions.
If somebody says "10 year treasuries were down today", they probably mean that the asking price was down (so it was a bad day for bond holders); but they sometimes mean that the yield to maturity was down because the asking price was up (a good day for bond holders).
www.moneychimp.com /articles/finworks/fmbondytm.htm   (583 words)

  
 Yield
In general, yield is the annual rate of return for any investment and is expressed as a percentage.
With stocks, yield can refer to the rate of income generated from a stock in the form of regular dividends.
Investors can use yield to measure the performance of their investments and compare it to the yield on other investments or securities.
www.investopedia.com /terms/y/yield.asp   (360 words)

  
 Bonds Yield to Maturity
Yield to maturity is the most commonly used measure of value of a bond.
This yield includes the compounding of interest and assumes that the bond is held until maturity.
Expressed mathematically, the relationship between the price P and the yield to maturity Y for a bond paying an annual coupon of R is, on a coupon date:
www.asset-analysis.com /bonds/bonytm.html   (117 words)

  
 [No title]
When the bond is selling at face value, its yield to maturity equals its coupon rate.
Enter PV = (900, compute i = yield to maturity = 8.971% Enter PV = (1,000, compute i = yield to maturity = 8.000% Enter PV = (1,100, compute i = yield to maturity = 7.180% 13.
The bond’s yield to maturity will increase from 7.5% to 7.8% when the perceived default risk increases.
www.cob.sjsu.edu /harjoto_m/BUS170_21/key5.doc   (398 words)

  
 Bond Calculations   (Site not responding. Last check: 2007-11-04)
The [YTM] key calculates the Yield to Maturity of a bond, expressed as percentage of par.
YTM accepts two date values, the settlement (purchase) date, followed by the maturity (redemption) date, and returns the calculated Yield to Maturity.
In effect, YTM is demonstrated by reversing the calculation, so as to arrive at the original YTM value we used earlier.
www.dreamcalc.com /dc3help/userguide_financial_bond_price_calculations.htm   (599 words)

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