ytm
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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...- Ixeua
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- bonds coupon-rate macaulay-duration ytm
- Replies: 9
- Forum: Fixed Income (P1.T4 or P2.T5)
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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...- Nicole Seaman
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- bond-pricing gross-realized-return net-realized-return reinvestments term-structure yield-to-maturity ytm
- Replies: 0
- Forum: FRM® Practice Questions
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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...- Fran
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- annuity perpetuity spot-rates tuckman yield-to-maturity ytm
- Replies: 8
- Forum: FRM® Practice Questions