Looking for reliable answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Discover comprehensive solutions to your questions from a wide network of experts on our user-friendly platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.
Sagot :
Fixed interest for the duration of the bond Yield = 6.66 % with face value $1000 and discount price $900.
What is the annual yield on corporate bonds?
Yield to Maturity (YTM) is the gross rate of return for an investor who buys a bond at the market price and holds it to maturity. , which is the discount rate at which the sum of all future cash flows (from coupons and principal repayments) equals the price of the bond.
Formula for calculating yield = ( interest paid / price paid)
Price paid = $900
Interest paid = face value x rate of interest
= $1,000 x 6%
= $60
Yield = ( $60 / $900)
= 6.66 %
What does return mean in the financial world?
Yield refers to how much income an investment will generate, apart from capital. Commonly used to refer to the interest payments that an investor receives on bonds and dividend payments on stocks. Returns are often expressed as a percentage based on the investment's market value or purchase price.
Learn more about Corporate bond yield :
brainly.com/question/27841771
#SPJ4
Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.
