YTM -IRR

Related BrainMass Solutions

• What is the yield to maturity (YTM) for a 10% Treasury bond with a price of 130 and semi-annual payments that matures in 25 years?

  There are 50 semiannual periods, in which year0 there is a cash inflow of Rs 130 and cash outflow of Rs 5 for 50 semiannual periods IRR= 3.68% Annualized YTM will be double of semiannual IRR = Thus YTM is 7.36%. b.

• Calculating the price and YTM of the given bond

  YTM=2.00% =IRR(B14:B20) This is semi annual rate. Annual YTM is given by YTM=2*2.00%= 4.00% Solution describes the steps to calculate the price and YTM of the given bond with the help of formulas in MS Excel.

• Calculating the bond'd yield to maturity

  YTM=3.00% =IRR(B37:B53) This is semiannual return. Annual YTM=2*3%=6.00% Solution describes the steps to calculate YTM of a bond in the given cases.

• Bond reinvestment of coupons; Yield to call; IRR for a 20 ye

  Calculate the IRR for the 20-year period if the bond is held for five years and then called since market rates have fallen to 8%. How does the IRR of the called bond compare to the original 12% YTM?

• Calculating YTM and YTC

  funtion to get YTM YTM=2.94% This is semi annual value Annual YTM=5.88% b.  

• Bond Yield

  The YTM is the IRR of the cash flows. You have to use trial and error method to find the YTM. The cash flows are $80 per year as interest for 10 years and $1,000 as principal repayment.

• Investment Management

  So considering the information IRR would be equal to YTM.

• Bond yields

  Current yield as 6.8% and EAR as 6.7% You can use the excel function of IRR to get the YTM fast. I am attaching some calculations The solution explains the calculation of current yield, YTM and EAR of a bond

• Calculating the current yield and YTM in the given case

  function in MS Excel to get YTM YTM=10.49% =IRR(B17:B26) c) If five years later the yield to maturity is 10 percent, what will be the price of the bond?