Bond Yields and Prices

Current Yield. annual coupon interest in dollars = C. Current yield = Current Price P. Does not account for capital gain (loss) Yield to maturity. Most commonly used. Promised compound rate of return received from a bond purchased at the current market price and held to maturity . Assumes: Interest payments reinvested. Reinvested at computed YTM Equates the present value of the expected future ... ................
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