ytm

  1. I

    Which bond should I pick if both have the same YTM, tenor, credit risk? One has a higher coupon rate than the other.

    Suppose I am presented 2 bonds YTM Coupon A 5% 6% B 5% 4% Given that both bonds have the same YTM, tenor, credit risk would either bond be better than another? A couple of things come to mind. In particular that the Macaulay duration (how fast an investor gets their money back) of...
  2. Nicole Seaman

    P1.T4.905. Gross versus net bond returns, bond spread and bond yield (Tuckman Ch. 3)

    Learning objectives: Distinguish between gross and net realized returns, and calculate the realized return for a bond over a holding period including reinvestments. Define and interpret the spread of a bond, and explain how a spread is derived from a bond price and a term structure of rates...
  3. Fran

    P1.T4.316. Tuckman's yield to maturity (YTM)

    AIMs: Define, interpret, and apply a bond’s yield-to-maturity (YTM) to bond pricing. Compute a bond's YTM given a bond structure and price. Explain the relationship between spot rates and YTM. Calculate the price of an annuity and a perpetuity. Questions: 316.1. Assume the following 2-year...
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