Coupon yield formula

    • [DOC File]Quantitative Problems Chapter 10 - University of Colorado ...

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      With PV $819, FV $1,000, PMT 0 and N 2, the yield to maturity on the two-year zero-coupon bonds is 10.5% for the two-year annuities, PV $1,712.52, PMT 0, FV $2,000 and N 2 gives a yield to maturity of 8.07%. The zero-coupon bonds are the better buy. 5. Consider the following cash flows.

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    • [DOC File]Chapter Nine - NYU

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      A General Formula for Duration. The Duration of Interest Bearing Bonds. The Duration of a Zero-Coupon Bond. The Duration of a Consol Bond (Perpetuities) Features of Duration. Duration and Maturity. Duration and Yield. Duration and Coupon Interest. The Economic Meaning of Duration. Semiannual Coupon Bonds. Duration and Immunization. Duration and ...

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    • [DOC File]Dividend discount model (a

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      The three variables represented in this formula are: C = coupon rate. Y = yield to maturity . T = time to maturity. Coupon rate will be entered as a decimal. For a bond with a 6 percent coupon rate, you will enter .06 in the formula. Yield will also be entered as a decimal.

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    • [DOC File]Overview - University of Nevada, Reno

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      For a zero coupon bond, duration equals maturity . For all other bonds: duration < maturity. Computing duration: Consider a 2-year, 8% coupon bond, with a face value of $1,000 and yield-to-maturity of 12%. Coupons are paid semi-annually. Therefore, each coupon payment is $40 and the per period YTM is (1/2) × 12% = 6%.

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    • [DOC File]University of North Florida

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      2. compute the discount yield of the security (ie. Use the discount formula), and. 3. compute the coupon equivalent (ie use the Equivalent bond or coupon yield formula) of the security's yield. 4. Use the following information: Bonds S1s High Low Last Chg

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    • [DOCX File]Homework Assignment – Week 2

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      Write down the formula that is used to calculate the yield to maturity on a 20-year 10% coupon bond with $1,000 face value that sells for $2,000. Assume yearly coupons. If there is a decline in interest rates, which would you rather be holding, long-term bonds or short-term bonds?

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    • [DOC File]Bond Features - University of Kentucky

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      Coupon rate or coupon yield: a bond’s annual coupon divided by its par value. Current yield: a bond’s annual coupon divided by the bond price. Yield to maturity. The market interest rate for bonds with similar features. This is the discount rate that equates a bond’s price with the …

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    • [DOC File]Bond Yields and Prices

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      Current Yield. annual coupon interest in dollars = C. Current yield = Current Price P. Does not account for capital gain (loss) Yield to maturity. Most commonly used. Promised compound rate of return received from a bond purchased at the current market price and held to …

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