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imported>Doug Williamson |
imported>Doug Williamson |
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| (YTM).
| | Zero Coupon Bond. |
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| The measure of yield on a financial instrument - for example a bond - from the current date until its final maturity.
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| It takes into account the capital gain on a bond (or other financial instrument) trading at a discount, or the capital loss on a bond (or other financial instrument) trading at a premium.
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| More specifically the return on a security held to maturity, taking account of the coupon and re-investment rates and the buying price compared to its face value.
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| YTM assumes that all coupons are fully paid out on their due dates and reinvested at the same yield and that the principal is paid back in full upon maturity.
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| It is an internal rate of return calculation performed on the security’s expected cash flows, including the initial investment outflow (= the current market value).
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| | == See also == |
| | * [[Zero coupon rate]] (ZCR) |
| | * [[Zero coupon bond]] |
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| == See also ==
| | [[Category:Financial_products_and_markets]] |
| * [[Bond]]
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| * [[Cost of debt]]
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| * [[Internal rate of return]]
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| * [[Macaulay duration]]
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| * [[Yield]]
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| * [[Yield to redemption]]
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| * [[Yield to worst]]
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Latest revision as of 14:31, 26 June 2022
Zero Coupon Bond.
See also