Tuesday

September 30, 2014

September 30, 2014

Posted by **Kevin** on Friday, March 5, 2010 at 4:47pm.

- Finance -
**drwls**, Saturday, March 6, 2010 at 8:47amWhat you probably really want is the Yield To Maturity (YTM). Assume the bond returns a $1000 face value after 4 years. That is what face value means. The coupon rate is the annual fraction of THAT value paid out.

With annual interest payments, the YTM is 14.7%. Most bonds make an interest payment semiannually. That won't change the YTM much.

There are online Java tools and formulas for computing YTM.

See, for example,

http://www.investopedia.com/calculator/AOYTM.aspx?viewed=1

**Answer this Question**

**Related Questions**

FINANCE - Current yield and yield to maturity A bond has a $1,000 par value, 10 ...

Finance - A bond has a $l000 par value, l0 years to maturity, a 7 percent annual...

Finance - Dahler Corporation has just issued a bond with a maturity of 20 years...

Finance - 1.You buy a SML Bond for $980. The bond has a face value of $1000 and ...

Finance - Which of the following statments is CORRECT? a. Assume that two bonds ...

math - Consider an 8% coupon bond selling for $953.10 with three years until ...

Finance - A three-year bond has 8.0% coupon rate and face value of $1000. If the...

Finance - A three-year bond has 8.0% coupon rate and face value of $1000. If the...

Finance - Bond Yields. An AT&T bond has 10 years until maturity, a coupon rate ...

Finance - An AT&T bond has 10 years until maturity, a coupon rate of 8 percent, ...