
Yield to Maturity (YTM) Definition & Example | InvestingAnswers
Mar 10, 2021 · Yield to maturity (YTM) measures the annual return an investor would receive if he or she held a particular bond until maturity.
Macaulay Duration Definition & Example | InvestingAnswers
Nov 6, 2020 · y = the periodic yield to maturity or required yield n = number of periods M = maturity value (in $) PV = market price of bond (in $) The formula is complicated, but what it …
Duration | Definition & Examples | InvestingAnswers
Jan 10, 2021 · What does bond duration mean? This financial definition walks you through how to calculate duration using real-world examples and simple formulas.
Yield Curve Definition & Example | InvestingAnswers
Nov 24, 2020 · How Does a Yield Curve Work? The yield curve shows the various yields that are currently being offered on bonds of different maturities. It enables investors at a quick glance …
Current Yield Definition & Example | InvestingAnswers
Oct 5, 2020 · Current yield represents the prevailing interest rate that a bond or fixed income security is delivering to its owners.
Perpetual Bond Definition & Example | InvestingAnswers
Oct 5, 2020 · A perpetual bond is a debt with no maturity date. Here's how to calculate your return: Current Yield = (Annual Dollar Interest Paid) / (Market Price) X…
YTW -- Yield to Worst -- Definition & Example | InvestingAnswers
Oct 5, 2020 · How Does Yield to Worst (YTW) Work? The concept is best illustrated with an example. Let's assume you own a callable bond issued by Company XYZ. The bond has a …
Weighted Average Maturity (WAM) Definition & Example
Aug 21, 2020 · Weighted Average Maturity Calculation with Example The WAM can be calculated by determining the weight of each maturity in the average, multiplying that weight by the …
Credit Spread Definition & Example | InvestingAnswers
Aug 21, 2020 · A credit spread is the difference between the yields of two bonds that offer the same coupon and have the same maturity.
Yield Maintenance Definition & Example | InvestingAnswers
Oct 1, 2019 · The bank calculates yield maintenance based on current interest rates and projected rates over the course of the life of the mortgage. Why Does Yield Maintenance …