This video is a supplement to an investments course I teach. In this video I walk through the following problem: Example: Suppose you have a risk-free bond that has a face value of $100, a two year maturity, pays a 3 percent coupon with semiannual coupons. The term structure of interest rates (via STRIPS) are provided in the table below. What is the price of the bond today? What is its YTM? What is the price of the bond in six months? What was your holding period return? Years | APR 0.5 | 2% 1.0 | 6% 1.5 | 8% 2.0 | 10% A pdf of the solution is available here: https://drive.google.com/file/d/0B3xxLxQB8cTzUTZqUXg3bFFIcE0/view?usp=sharing A pdf of the solution to a similar problem is available here: https://drive.google.com/file/d/0B3xxLxQB8cTzUXBQdVpWS0NxdU0/view?usp=sharing -------------------------------------------------------------------------------- General Recommendations for Finance Reading -------------------------------------------------------------------------------- Fundamentals of Investments: http://amzn.to/2r9gCXC The Intelligent Investor: http://amzn.to/2sGY6rt A Random Walk Down Wall Street: http://amzn.to/2r9qX5N
Views: 4305 Jonathan Kalodimos, PhD
Analysis of Investment - Bond Holding Period Return Watch more Videos at https://www.tutorialspoint.com/videotutorials/index.htm Lecture By: Mr. Niranjan Kumar, Tutorials Point India Private Limited
Views: 667 Tutorials Point (India) Pvt. Ltd.
This video is part of a BlueBook Academy course: Discounted Cash Flow Methods. BlueBook Academy is an online finance school to get people job ready, without debt and then help them find jobs. Start on a learning path, a selection of hand-picked certificates, designed to give you the essentials you need to land your dream job. Study towards exams and increase your chances of success with free tutorials, quizzes and extra learning resources. Or start on a specific course and earn an accredited certificate to add to your LinkedIn profile and CV. BlueBook Academy students have successfully landed their dream jobs at Accenture, Morgan Stanley, Citigroup, KPMG and many more. We've been featured at the QS-Wharton Reimagine Education Awards and the UK National Undergraduate Employability Awards. Learn for free - get certified - land your dream job. Join our fast growing community of learners at bluebookacademy.com
Views: 3269 BlueBookAcademy.com
FREE VIDEOS FOR EVERY COMMERCE STUDENTS. SUBSCRIBE AND GO TO PLAYLIST, CHECK VIDEOS RELEVANT FOR YOU AND STUDY. BASICS OF FINANCIAL MANAGEMENT CHECK OUT THE LINK https://www.youtube.com/playlist?list=PLE9WfizlEQXLKO_twxXAGdvCTzAM57Ohn
Views: 1233 CA Ravi Kumar: Lets Educate
describe the relationships among a bond’s holding period return, its duration, and the investment horizon;
Views: 17 Ted Stephenson
https://goo.gl/hVWf1P for more FREE video tutorials covering Portfolio Management.
Views: 374 Spoon Feed Me
Check out our website - https://www.excelerate-learning.com/ We have just launched our Excel for Beginner's course, helping you harness the power of Excel quickly by only teaching core concepts, check it out! Download the free template here! - http://festyy.com/wJV7qP or http://www.mediafire.com/file/n3o7vbq5i16lnj3/Holding_Period_Yield_Template_v2.xlsx/file Bond Price Calculator tutorial - https://youtu.be/P3j9lx6OT34 Thank you for watching, please like and subscribe for future tutorials and templates :) Learn how to calculate the holding period yield, or return of a bond in excel with a free downloadable template.
Views: 371 Excelerate Learning
The money markets are concerned with very liquid securities investment products based upon cash-flows, with usually less than one year to maturity and without associated coupons. Typical investment products include government treasury bills, certificates of deposit, commercial paper, and short-term zero-coupon bonds. Although investment yields are often lower than long-term bonds and other equity-based investments, the high liquidity in the money markets means you can get in and out of your positions relatively quickly and easily. Therefore the money markets attract large investors such as insurance companies who may need to turn investments into cash at very short notice. The key yield curve in the money markets is the Inter-Bank Offer Rate (such as LIBOR), which itself is closely related to the market riskless rate. Many corporate products (such as commercial paper) have yields based upon a 'spread' to floating Inter-Bank Offer Rates (i.e. they offer higher yields than bank-to-bank loans and treasury bills). There are also four other key yield measures employed in the money markets. These are the Bank Discount Yield, the Holding Period Yield, the (simple) Money Market Yield, and the Effective (compounded) Annual Yield. This lecture discusses all four, how they are used, how they are related, and how they offer different kinds of short-term investment information. Previous lecture: http://www.youtube.com/watch?v=iAbD-T2GfnE Next lecture: http://www.youtube.com/watch?v=kGiluWlcaqI For financial education from London to Singapore and beyond, please contact MithrilMoney via the following website: http://mithrilmoney.com/ This MithrilMoney lecture was delivered by Andy Duncan, CQF. Please read our disclaimer: http://mithrilmoney.com/disclaimer/
Views: 7770 MithrilMoney
Watch the next finance lesson: https://bluebookacademy.com/courses
Views: 329 BlueBookAcademy.com
Holding Period Return (HPR), Effective Annual Rate (EAR) and Annual Percentage Rate (APR): How do you calculate them, and what are they? My Book on Corporate Valuation at Amazon [Australia] https://amzn.to/2qS5wZs and [US] https://amzn.to/2FjicT7 This video covers how to calculate investments' holding period returns and how to annualize those returns by using the EAR and APR methods. It also relates those returns to each-other and provides examples. This is important for investment and for qualifications such as CFA #Returns
Views: 166 Income and Capital
FinTree website link: http://www.fintreeindia.com FB Page link :http://www.facebook.com/Fin... We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with! This Video was recorded during a one of the CFA Classes in Pune by Mr. Utkarsh Jain.
Views: 19550 FinTree
calculate and interpret the bank discount yield, holding period yield, effective annual yield, and money market yield for US Treasury bills and other money market instruments;
Views: 198 Ted Stephenson
Download Excel workbook http://people.highline.edu/mgirvin/ExcelIsFun.htm Learn how to: 1. Calculate Dollar Returns for Coupon Bond 2. Calculate Nominal Percentage Returns for Coupon Bond 3. Calculate Real Percentage Returns for Coupon Bond 4. Calculate Real Dollar Returns for Coupon Bond
Views: 6522 ExcelIsFun
Calculating HPR, Arithmetic and Geometric Averages
Views: 4185 Ronald Sweet
My Business and Financial Mathematics Tutorials- http://goo.gl/KGkCDW My Casio Scientific Calculator Tutorials- http://goo.gl/uiTDQS I'm Sujoy and today I'll show you how to calculate Holding Periodic Return (HPR) and Post Tax Return (PTR) on Casio fx-991ES Scientific Calculator. Topics Explained- 1. Meaning of Holding Period Return (HPR) 2. Holding Period Return (HPR) Word Problem 3. Holding Period Return (HPR) formula 4. Programming Holding Period Return (HPR) formula on Casio fx-991ES Scientific Calculator 5. Post Tax Return (PTR) of Investment calculation word problem 6. Post Tax Return (PTR) formula 7. Programming Post Tax Return (PTR) formula on Casio fx-991ES Scientific Calculator That's it for now! How is the video? Let me know. I've uploaded videos on - 1) Statistics, 2) Numerical Methods, 3) Calculator Tricks for Exams 4) Business & Financial Mathematics, 5) Operations Research(OR), 6) Computer Science & Engineering(CSE), 7) Electrical Engineering, 8) Life Hacks! 9) CCNA Networking, 10) Android Application Reviews, 11) India Travel & Tourism, 12) Street Foods, and many other topics. Plz visit my channel to watch them. Thanks! Join me at my YouTube Channel- http://www.youtube.com/sujoyn70 Join me at my Blog- http://www.sujoyn70.blogspot.com
Views: 1416 Sujoy Krishna Das
In this video I will explain how to calculate the rate of return on bond investment.
Views: 1474 F. Tayari
This CFA Level I video covers concepts related to: • Time Weighted Return (Continued) • Bank Discount Yield • Holding Period Yield • Effective Annual Yield • Money Market Yield • Bank Equivalent Yield • Yield Measures Problems For more updated CFA videos, Please visit www.arifirfanullah.com.
Views: 13219 IFT
calculate and interpret a holding period return (total return)
Views: 46 Ted Stephenson
Download Excel workbook http://people.highline.edu/mgirvin/ExcelIsFun.htm See how to calculate the Returns For Zero Bond using the Present Value formula and the Percentage Change Formula.
Views: 4561 ExcelIsFun
Register for free CFA course: http://www.edupristine.com/ca/free-10-day-course/cfa-quantitative-methods/ Learn How to Calculate the following terms : - Holding period yield - Bank discount yield - Money market yield More about CFA on: http://www.edupristine.com/ca/courses/cfa/ About EduPristine: Trusted by Fortune 500 Companies and 10,000 Students from 40+ countries across the globe, EduPristine is one of the leading Training provider for Finance Certifications like CFA, PRM, FRM, Financial Modeling etc. EduPristine strives to be the trainer of choice for anybody looking for Finance Training Program across the world. Subscribe to our YouTube Channel: http://www.youtube.com/subscription_center?add_user=edupristine
Views: 4536 EduPristine
Holding period definition & example what is holding period? Definition and meaning investor words. In a long holding period return yield is calculated on the basis of total returns from asset what hpr for an investor who bought stock year ago at $50 and it refers to time during which holds given security short term defined as less than one while length was held (the between trade date purchase sale). What a difference day makes holding period rules for what is your period? Loopholelewy. Length of if mutual fund scheme is wound up, what happens to money invested? What are the time tested investment strategies that work? It's very hard come up with an average, as data required do calculation would be problematic gatherthe 11 second quo holding period rules for preferential capital gains treatment. Lower capital gains rates apply to assets held more than one year holding period. Learn more the formula for holding period return is used calculating on an investment over multiple periods. The holding period determines whether a under the current law, an asset has long term if it been held, or is deemed to what's involved in reconciling capital gains and losses definition of financial dictionary by free online english encyclopedia. What are the holding period requirements of an iso return wikipedia. What is private equity hold period? Definition from divestopedia. Holding period what is holding period? Mutual fund glossary the average for a stock? Quora. Holding period return yield investopedia. Holding period investopedia. The returns on an investment may be shown 27 feb 2014 one day can the difference between a high tax your capital gain (as as 39. Holding period definition in the cambridge english dictionary. Learn more holding period meaning, definition, what is the length of time that someone owns an asset or investment. What is holding period? Meaning of period definition for which an asset must be held by its owner to claim the associated tax benefits rate return (including any interest or dividends paid during period) actually realized on investment in a bond timeline below illustrates concept period, showing how long you keep shares prevent disqualifying disposition and make finance, (hpr) total portfolio over tools. Holding period return formula and calculator. What is a 'holding period'. How to calculate a holding period the motley fool. What is holding period? Definition and meaning period yield (hpy) definition nasdaq. Holding period meaning in the cambridge english dictionary. Holding period rules for preferential capital gains treatment. A holding period is the real or expected of time during which an investment attributable to a particular investor. What a difference day makes! we've all heard that expression more often than we care to 7 apr 2017 this article explains the capital gains tax rate for each of three holding periods irs recognizes private equity hold typical buyout investment is five seven years in an active deal market. Your
Views: 243 Bet My Bet
As an investor you will need to compare returns over different time periods and to compare apples with apples we usually annualize returns. But how do you convert a daily, weekly or monthly return into an annual return? Watch this video to find out. Support us on Patreon: https://patreon.com/pensioncraft
Views: 6169 PensionCraft
Consider the following spot interest rates for maturities of one, two, three, and four years. Year | Rate 1 | 4% 2 | 5% 3 | 6% 4 | 7% What is the price of a four year, 4 percent coupon bond with a face value of $100? Assume the bond pays an annual coupon. What are our expectations of the yield for a one year bond that starts in one, two, and three years, i.e., what are the forward rates? Suppose the inflation expectations are a constant 2 percent, what are the expected real interest rates for each one year period in the future? Suppose that immediately after purchasing the bond that market expectations of the inflation rate decrease to a constant one percent. What are our new nominal forward rates? Assume expectations of real interest rates have not changed. In one year, what do we expect the new term structure of interest rates to be? In one year, what do we expect the price of the bond to be based on the new term structure of interest rates? What do we expect the holding period return to be if you sell it immediately after receiving the first year’s coupon? Note: There is a typo in calculating the holding period return. The correct formula is (92.22 - 90.17 + 4)/90.17 = 6.7% Note: A pdf of the solution is available from here: https://goo.gl/MeMDkv
Views: 2255 Jonathan Kalodimos, PhD
Create Your Portfolio https://en.samt.ag/user-registration Profit is the goal of investing. Measuring profit or return seems like a straightforward process, but there are differences in return measures depending on your investment approach. This video is part 1 of our Portfolio Series, where we’ll look at the major return measures and their uses. 1. Holding Period Return It is the percentage increase in the value of an investment over a given time. It is used to measure the total return on an asset (more likely a portfolio) over the period it was held. It’s simple to calculate if you’re familiar with the concept of percentages, and yes, it is expressed as a percentage. Holding period return = (end of period value/beginning of period value) – 1 We will modify the end of period value. Say, we are investing in stocks so we need to cater for dividend income. HPR = (Pt + Divt)/P0 - 1 HPR = (Pt - P0 + Divt)/ P0 Pt = End of Period Value Divt = Dividend at time t P0 = Beginning of Period Value For example, a stock is valued at $25 at the beginning. Say we’re calculating the return for one year holding period, so after a year the stock is valued at $28, and pays $2 dividend as well. Its holding period return will be; HPR = ($28 - $25 + $2)/$25 = 5/25 = 1/5 = 20% The holding period return is specifically useful for comparing returns of different investments held for different time periods. 2. Average Returns This is probably the one everyone’s familiar with. As the name suggests, it is the simple average of a series of periodic returns. It’s also known as the arithmetic mean return. You calculate it by adding up all the numbers in the series, and then dividing by the total number in the series. Arithmetic mean return = (R1 + R2+ R3+ R4… + Rn)/n 3. geometric mean return, In comparison to arithmetic mean, it is compounded annually, and it is calculated as follows; Geometric mean return = n√(1 + R1) x (1 + R2) x (1 + R3) x (1 + R4) x… x (1 + Rn) – 1 A key difference between the arithmetic and the geometric mean return is that in case the periodic rates of return vary then the geometric mean return will be less than the arithmetic mean return. Let’s understand this through an example; An investor buys $2000 of ETF shares, the fund had total returns for the three year period as; +6%, -7%, +13%. Let’s calculate the holding period return, mean annual return and the geometric mean annual return; To find the holding period return we need to find the ending value of the investment; End Value = ($2000) (1.06) (0.93) (1.13) = $2227.9 Now, the holding period return will be HPR = (2227.9 – 2000)/2000 = 0.1139 = 11.39% Arithmetic mean return = (6% -7% +13%) / 3 = 4% Geometric mean return = 3√ (1.06) (0.93) (1.13) – 1 = 3√1.113954 - 1 = 1.03662677 – 1 = 0.03662677 = 3.66% As shown by the numbers, this is generally the case, the arithmetic mean return is greater than the geometric mean. Number 4, the money weighed rate of return. It’s is a little different as it measures the internal rate of return of a portfolio by accounting for cash outflows and inflows. Simply put, it is the discount rate at which the NPV = 0 or the present value of inflows = present value of outflows To calculate this, you need to establish the cash inflows and outflows. For example what you invest in the beginning, and any other cash deposits you make subsequently would be your cash inflows, while any cash withdrawals, interests, dividends and the ending value will be treated as cash outflows. The real reason behind categorizing cash flows as such is because the calculation is from the perspective of the portfolio manager. Let’s understand this with an example. Say, you buy a share of a company for $90 at t = 0, at the end of the year (t = 1), you buy an additional share for $80. Now, at the end of the second year that would be t = 2, you sell both shares for $95 each. Also, while you were holding the shares, at the end of each year the company paid $2.5 dividend per share. So how do we calculate the money weighed rate of return? Step 1: first we need to establish the timings as well as classification whether it was a cash inflow or cash outflow; So, following the rules I just mentioned… At t = 0, bought the 1st share = $90 cash inflow At t = 1, bought the 2nd share = $80 cash inflow Dividend from the 1st share = -$2.5 Subtotal at t = 1 $77.5 cash inflow to the account At t = 2: Dividend from the two shares = -$5 Proceeds from selling shares = -$190 Subtotal, t = 2 -$195 outflow from account Step 2 Set the present value of cash inflow equal to the present value of cash outflow after netting the cash flows for each time period; PV (inflow) = PV (outflow) $90 + $77.5 / (1+r) = 195 / (1+r)2 @NaelShahbaz
Views: 152 SAMT AG Schweizer Vermögensverwaltung
Download Preston's 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location: http://www.amazon.com/gp/product/0982967624/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0982967624&linkCode=as2&tag=pypull-20&linkId=EOHYVY7DPUCW3WD4 http://www.amazon.com/gp/product/1939370159/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1939370159&linkCode=as2&tag=pypull-20&linkId=XRE5CA2QJ3I2OWSW In this lesson, we began to understand the important terms that truly value a bond. Since most investors will never hold a bond throughout the entire term, understanding how to value the asset becomes very important. As we get into the second course of this website, a thorough understanding of these terms is needed. So, be sure to learn it now and not jump ahead. We learned that there are two ways to look at the value of a bond, simple interest and compound interest. As an intelligent investor, you'll really want to focus on understanding compound interest. The term that was really important to understand in this lesson was yield to maturity. This term was really important because it accounted for almost every variable we could consider when determining the true value (or intrinsic value) of the bond. Yield to Maturity estimates the total amount of money you will earn over the entire life of the bond, but it actually accounts for all coupons, interest-on-interest, and gains or losses you'll sustain from the difference between the price you pay and the par value.
Views: 372855 Preston Pysh
Shows how to download stock data from Yahoo Finance, and calculate daily stock returns, average stock returns, variance and standard deviation of stock returns Some good books on Excel and Finance: Financial Modeling - by Benninga: http://amzn.to/2tByGQ2 Principles of Finance with Excel - by Benninga: http://amzn.to/2uaCyo6
Views: 216834 Codible
calculation of holding period return Two years ago, you purchased 100 shares of Coca-Cola Company. Your purchase price was $33 a share, plus a total commission of $29 to purchase the stock. During the last two years, you have received the following dividend amounts: $0.94 per share for the first year and $1.12 per share the second year. Also, assume that at the end of two years, you sold your Coca-Cola stock for $40 a share minus a total commission of $34 to sell the stock.
Views: 30 Pravin Mandora
Download Excel workbook http://people.highline.edu/mgirvin/ExcelIsFun.htm See how to calculate the Holding (Period) Rate for a stock held for 3 months and 32 days, and then calculate the APR and Ear (Effective Annual Rate) for a Stock. See that the EFFECT function does not calculate correctly when the exponent for number of periods per year is not an integer.
Views: 6624 ExcelIsFun
Download Excel workbook http://people.highline.edu/mgirvin/ExcelIsFun.htm Learn how to: 1. Dividend Yield 2. Capital Gain Yield 3. Total Return for the year, where or not you sell the stock 4. Percentage Change Formula End/Beg -1
Views: 10660 ExcelIsFun
This video explains how to determine the holding period for stock received by the transferor in a Section 351 transaction. For capital assets and Section 1231 assets, the holding period of the asset transferred tacks on to the holding period of the stock the transferor is receiving from the corporation. For example, if the transferor transfers a capital asset in exchange for the corporation's stock, and the transferor had held the capital asset for 6 months prior to the Section 351 transaction, then sells the stock received in the Section 351 transaction 8 months after receiving it, the holding period would be 14 months (thus, the gain or loss would be long-term, not short-term). When the transferor transfers ordinary assets in a Section 351 transaction, however, the holding period of the asset does not tack on to the holding period of the stock received (and thus the holding period begins the day after the Section 351 transaction). Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like Edspira on Facebook, visit https://www.facebook.com/Edspira To sign up for the newsletter, visit http://Edspira.com/register-for-newsletter Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin To follow Michael on Facebook, visit https://www.facebook.com/Prof.Michael.McLaughlin
Views: 2819 Edspira