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How to calculate Yield to Maturity (YTM)
 
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This video from N S TOOR School of Banking, explains the concept of Yield to Maturity. It also provides a case study to understand the concept of YTM
Views: 177200 Ns Toor
Yield to Maturity (YTM) Formula in Mutual Funds | Basic Concepts Explained by Yadnya
 
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Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of its lifetime. ... In other words, it is the internal rate of return of an investment in a bond if the investor holds the bond until maturity and if all payments are made as scheduled. Find us on Social Media and stay connected: Facebook Page - https://www.facebook.com/InvestYadnya Facebook Group - https://goo.gl/y57Qcr Twitter - https://www.twitter.com/InvestYadnya
Calculating the Yield of a Coupon Bond using Excel
 
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UPDATE: You can also find the YTM by trial and error. If you plug in 0.06 for the YTM in the equation this gives you $91,575, which is lower than $92,227. YTM = 0.058 gives you $92,376, which is a little bit higher than $92,227. YTM = 0.0585 gives you $92,175, but YTM = 0.0584 gives you $92,215 which is very close to $92,227. Thus, 5.84% is the approximate YTM This video explains how to calculate the yield-to-maturity of a coupon bond. A comprehensive example is provided that shows the formula for calculating the yield, but the video also provides a Microsoft Excel formula that provides an easier means of determining the yield. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira 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 Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 77438 Edspira
8. Value a Bond and Calculate Yield to Maturity (YTM)
 
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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: 372853 Preston Pysh
Finding YTM
 
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A brief demonstration on finding the Yield to Maturity of a bond
How to calculate the bond price and yield to maturity
 
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This video will show you how to calculate the bond price and yield to maturity in a financial calculator. If you need to find the Present value by hand please watch this video :) http://youtu.be/5uAICRPUzsM There are more videos for EXCEL as well Like and subscribe :) Please visit us at http://www.i-hate-math.com Thanks for learning
Views: 298671 I Hate Math Group, Inc
How to Calculate Yield to Maturity - YTM  JAIIB Live Class [Hindi]
 
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Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of its lifetime. Yield to maturity is considered a long-term bond yield, but is expressed as an annual rate. In other words, it is the internal rate of return of an investment in a bond if the investor holds the bond until maturity and if all payments are made as scheduled. ---------------------------------------------------------- GET 3000+ JAIIB PREVIOUS YEAR QUESTIONS, Study Notes, Videos https://goo.gl/M8zMrV ------------------------------------------------------------- GET 4000+ CAIIB PREVIOUS YEAR QUESTIONS, Study Notes, Videos https://goo.gl/QGq6Sc ---------------------------------------------------------- Present value Table: https://photos.app.goo.gl/644fD4y6kn6JrJ9G2 Annuity Table: https://photos.app.goo.gl/i6GPIl5zKHYEk3732 ____________________________________________________________ Join our Facebook Group: https://www.facebook.com/groups/jaiib.caiib.tests/ ____________________________________________________________ How to Calculate EMI [VIDEO in हिंदी ] https://www.youtube.com/watch?v=KwIDmbT2Tts GET JAIIB PREVIOUS YEAR QUESTIONS APP: Download JAIIB Pro App for Android Now: https://goo.gl/ySSwak Internal Rate of Return: https://www.youtube.com/watch?v=cgcY0vsINtE Yield to Maturity: https://www.youtube.com/watch?v=KL7Jn99RIKI Letter of Credit: https://www.youtube.com/watch?v=kZG7KVz6ADA ___________________________________________________ Important Question Principles & Practices of banking ___________________________________________________ Part 1: https://www.youtube.com/watch?v=4AnaI4QCtrM Part 2: https://www.youtube.com/watch?v=5p9BMivJyyg Legal Banking Questions: https://www.youtube.com/watch?v=_7N3nBm7E8M Basel 1 Basel 2 Basel 3: https://www.youtube.com/watch?v=x_sOTObwx7g SARFAESI ACT 2002: https://www.youtube.com/watch?v=NFP--aVBrN8 Joint Liability Group: https://www.youtube.com/watch?v=EwHr4kbYtb4 Self Help Group: https://www.youtube.com/watch?v=Aw2E4wGC6XY Hypothecation: https://www.youtube.com/watch?v=LfyMNVKBttY Pledge: https://www.youtube.com/watch?v=SeOj8iSo1-E Banking Ombudsman https://www.youtube.com/watch?v=yk_qkutLzXY Internal rate of return https://www.youtube.com/watch?v=cgcY0vsINtE Protection to paying banker https://www.youtube.com/watch?v=T5E41Xd9rbs Letter of Credit and Its Types https://www.youtube.com/watch?v=kZG7KVz6ADA ____________________________________________________________ Download App: https://bit.do/jaiib -~-~~-~~~-~~-~- Please watch: "Protection to Collecting Banker NI Act Legal and Regulatory Aspects of Banking JAIIB" https://www.youtube.com/watch?v=V-hiw3njkak -~-~~-~~~-~~-~-
Views: 64993 Learning sessions
Bonds - Yield to Maturity - Example 1
 
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In this video, you will learn to find out yield to maturity for a bond.
Views: 13379 maxus knowledge
Yield to Maturity Formula - Approximation
 
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In this tutorial, you’ll learn how to approximate the Yield to Maturity (YTM) of a bond, including how you might modify it to cover Yield to Call and Yield to Put as well as real-life scenarios with debt investing. http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Table of Contents: 1:14 Part 1: The Yield to Maturity (YTM) and What It Means 5:27 Part 2: How to Quickly Approximate YTM 10:19 Part 3: How to Extend the Formula to Yield to Call and Yield to Put 13:32 Part 4: How to Use This Approximation in Real Life 16:27 Recap and Summary Part 1: The Yield to Maturity (YTM) and What It Means Yield to Maturity is the internal rate of return (IRR) from buying the bond at its current market price and holding it to maturity. Assumption #1: You hold the bond until maturity. Assumption #2: The issuer pays all the coupon and principal payments, in full, on the scheduled dates. Assumption #3: You reinvest the coupons at the same rate. Intuition: What’s the *average* annual interest rate % + capital gain or loss % you earn from the bond? You can use the YIELD function to calculate this in Excel: =YIELD(Settlement Date, Maturity Date, Coupon Rate, Bond Price % Par Value Out of the Number 100, 100, Coupon Frequency) For example, if you buy a 5% bond for 96.23% of its par value on December 31, 2014, and hold it until its maturity on December 31, 2024, you could enter: =YIELD(“12/31/2014”, “12/31/2024”, 5%, 96.23, 100.00, 1) = 5.500% You could also project the cash flows from the bond and use the IRR function to calculate YTM, but this will work only for annual periods and annual coupons. Part 2: How to Quickly Approximate YTM Approximate YTM = (Annual Interest + (Par Value – Bond Price) / # Years to Maturity) / (Par Value + Bond Price) / 2 Intuition: Each year, you earn interest PLUS an annualized gain on the bond price if it’s purchased at a discount (or a loss if it’s purchased at a premium). And you earn that amount on the “average” between the initial bond price and the amount you get back upon maturity. For example, on a 10-year $1,000 bond with a price of $900 and coupon of 5%: Annual Interest = 5% * $1,000 = $50 Par Value – Bond Price = $1,000 – $900 = $100 (Par Value + Bond Price) / 2 = ($1,000 + $900) / 2 = $950 Approximate YTM = ($50 + $100 / 10) / $950 = $60 / $950 = ~6.3% There are a few limitations: the approximation doesn’t work as well with big discounts or premiums to par value, nor does it work as well with different settlement and maturity days. It also will not handle floating interest rates since it assumes a fixed coupon. Part 3: How to Extend the Formula to Yield to Call and Yield to Put Call options on bonds let companies redeem a bond early when interest rates have fallen, or its credit rating has improved, meaning it can refinance at a lower rate. Usually, the company has to pay a premium to par value to call the bond early. Put options are the opposite, and let investors force early redemption (usually when interest rates have risen, or the company’s credit rating has fallen). Approximate Yield to Call or Yield to Put = (Annual Interest + (Redemption Price – Bond Price) / # Years to Maturity) / ((Redemption Price + Bond Price) / 2) For example, to calculate the Yield to Call on a 10-year $1,000 bond with a price of $900, coupon of 5%, and a call date 3 years from now at a redemption price of 103: Approximate YTC = ($50 + ($1,030 – $900) / 3) / (($1,030 + $900) / 2) Approximate YTC = ($50 + $43) / $965 = $93 /$965 = ~9.7%, which you can estimate as “just under 10%” Part 4: How to Use This Approximation in Real Life Example: You’re at a credit fund that targets a 10% IRR on investments in high-yield debt. JC Penney has a 4-year 7.950% bond that’s currently trading at 91.75 (as in, 91.75% of par value). This seems like an easy “yes”: you get around 8% interest per year + an 8% discount / 4, and ~10% / average price of 96% results in a yield just above 10%. BUT will a distressed company be able to repay the bond principal upon maturity? What if its financial situation worsens? You estimate that in the best-case scenario, you’ll get 65% of the principal back upon maturity (65% “recovery percentage”). The recovery percentage will be 47% and 13% in more pessimistic cases. Scenario 1 Approximate YTM: (8% – 27% / 4) / 78.5% = 1.6% Scenario 2 Approximate YTM: (8% – 45% / 4) / 69.5% = -4.7% So this is almost certainly a “No Invest” decision if these recovery percentages are accurate – even in the Upside Case, we’re far below 10%. RESOURCES: https://youtube-breakingintowallstreet-com.s3.amazonaws.com/Yield-to-Maturity-Formula-Slides.pdf https://youtube-breakingintowallstreet-com.s3.amazonaws.com/Yield-to-Maturity-Formula.xlsx
Yield To Maturity - YTM - Bond Example
 
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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 bond is currently trading at $97. What are the stream of cash flows associated with the bond? What is the yield to maturity.
Yield to Maturity
 
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Free Online Textbook @ https://businessfinanceessentials.pressbooks.com/ An example of calculating Yield-to-Maturity using the 5-key approach.
Views: 135820 Kevin Bracker
Introducing Yield To Maturity, Lecture 012, Securities Investment 101, Video 00014
 
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In this introductory lecture, we explain the conceptual framework behind 'Yield To Maturity' and why it is conceptually different from 'Flat Yield'. In the next two lectures, we will further explore the ideas put forward in this lecture, and both price a bond, given a yield to maturity input, and calculate a yield to maturity, given a bond price input. Previous: http://www.youtube.com/watch?v=J0QNupJbBsw Next: http://www.youtube.com/watch?v=C1b-UPfeBo0 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: 49410 MithrilMoney
Yield to Maturity for Bonds Question Analysis (SIE + Series 6/7/65/66)
 
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In this video, I discuss how to interpret a common Series 7/66 question on Yield to Maturity. Concepts covered: nominal rate, coupon, current yield, yield to maturity, bond see-saw, inverse relationship between prices and yields, bonds, formulas for the test. Visit my website and social media for additional help & resources: website: http://www.basicwisdom.net twitter: https://twitter.com/thebasicwisdom instagram: https://www.instagram.com/basicwisdom/ facebook: https://www.facebook.com/basicwisdom/
Views: 1299 Basic Wisdom
FRM: TI BA II+ to compute bond yield (YTM)
 
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Given four inputs (price, term/maturity, coupon rate, and face/par value), we can use the calculator's I/Y to find the bond's yield (yield to maturity). For more financial risk videos, visit our website! http://www.bionicturtle.com
Views: 131746 Bionic Turtle
Yield To Maturity using Interpolation
 
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Estimating the yield to maturity using Interpolation.
Views: 1689 Brian Byrne
Calculating the Yield of a Zero Coupon Bond
 
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This video demonstrates how to calculate the yield-to-maturity of a zero-coupon bond. It also provides a formula that can be used to calculate the YTM of any zero-coupon bond. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira 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 Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 37460 Edspira
Calculating bond YTM
 
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In this video, I discuss how to calculate YTM using the trial & error method. I then follow it up with how to calculate YTM using the Goal Seek function in Excel (which essentially does the trial & error in the backdrop).
Views: 5255 S Roy
Calculate the YTM of a Coupon Bond
 
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This video explains the meaning of the yield to maturity (YTM) of a coupon bond in the coupon bond valuation formula and how to calculate the YTM using a financial calculator.
Views: 436 Michael Padhi
Explaining Bond Prices and Bond Yields
 
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​In this revision video we work through some numerical examples of the inverse relationship between the market price of fixed-interest government bonds and the yields on those bonds. ​Government bonds are fixed interest securities. This means that a bond pays a fixed annual interest – this is known as the coupon The coupon (paid in £s, $s, Euros etc.) is fixed but the yield on a bond will vary The yield is effectively the interest rate on a bond. The yield will vary inversely with the market price of a bond 1.When bond prices are rising, the yield will fall 2.When bond prices are falling, the yield will rise - - - - - - - - - MORE ABOUT TUTOR2U ECONOMICS: Visit tutor2u Economics for thousands of free study notes, videos, quizzes and more: https://www.tutor2u.net/economics A Level Economics Revision Flashcards: https://www.tutor2u.net/economics/store/selections/alevel-economics-revision-flashcards A Level Economics Example Top Grade Essays: https://www.tutor2u.net/economics/store/selections/exemplar-essays-for-a-level-economics
Views: 50524 tutor2u
FRM: How to get yield to maturity (YTM) with Excel & TI BA II+
 
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Yield to maturity (YTM, yield) is the bond's internal rate of return (IRR). It is the rate that discounts future cash flows to the current market price. For more financial risk management videos, visit our website at http://www.bionicturtle.com
Views: 221837 Bionic Turtle
How (and Why) to Calculate Yield to Maturity
 
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Support InformedTrades! Make a donation to help us make better videos: http://www.informedtrades.com/donate Join us in the discussion on InformedTrades: http://www.informedtrades.com/2002515-introduction-yield-maturity.html KEY POINTS 1. Yield to Maturity is the yield of the remaining payments due on a bond relative to its purchase price. Mathematically, the equation looks something like this: ((Sum of remaining coupon payments + par value)/ purchase price) - 1 2. The primary value of the yield to maturity is that it allows bond investors/traders to compare the income potential of bonds with radically different maturities, coupon rates, par values, and prices. 3. There is still some uncertainty regarding whether yield to maturity calculations should assume re-investment of each coupon rate at the yield to maturity rate of the bond. Most online calculators do not incorporate this possibility, though much of the recommended financial literature advocates doing so so that a true picture of a bond's income potential can be obtained. 4. For bonds that are callable, the yield to maturity may be a bit misleading, as the bond could get called before all the coupon payments factored into the yield to maturity calculation are made. Some bond investors thus prefer to calculate what is known as the yield to call, which is the same calculation as the yield to maturity -- but uses the next call date to determine maturity date. Conservative investors can then base decisions around what is known as yield to worst -- the lower of the yield to call and yield to maturity. Playing around with a yield to maturity calculator is a way for investors to better apply and understand the components that drive yield to maturity, and how they relate to each other.
Views: 2648 InformedTrades
JAIIB Yield to Maturity with example Accounting and Finance for Banking in Hindi
 
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The yield to maturity (YTM), book yield or redemption yield of a bond or other fixed-interest security, such as gilts, is the internal rate of return (IRR, overall interest rate) earned by an investor who buys the bond today at the market price, assuming that the bond will be held until maturity GET 3000+ JAIIB PREVIOUS YEAR QUESTIONS, Study Notes, Videos https://goo.gl/M8zMrV ------------------------------------------------------------- GET 4000+ CAIIB PREVIOUS YEAR QUESTIONS, Study Notes, Videos https://goo.gl/QGq6Sc NOSTRO ACCOUNTS https://www.youtube.com/watch?v=cNESYz3lc6Y Vostro Accounts https://www.youtube.com/watch?v=1hIjjnxtKmw How to Calculate EMI [VIDEO in हिंदी ] https://www.youtube.com/watch?v=KwIDmbT2Tts Internal Rate of Return: https://www.youtube.com/watch?v=cgcY0vsINtE Yield to Maturity: https://www.youtube.com/watch?v=KL7Jn99RIKI Letter of Credit: https://www.youtube.com/watch?v=kZG7KVz6ADA ___________________________________________________ Important Question Principles & Practices of banking ___________________________________________________ Part 1: https://www.youtube.com/watch?v=4AnaI4QCtrM Part 2: https://www.youtube.com/watch?v=5p9BMivJyyg Legal Banking Questions: https://www.youtube.com/watch?v=_7N3nBm7E8M Basel 1 Basel 2 Basel 3: https://www.youtube.com/watch?v=x_sOTObwx7g SARFAESI ACT 2002: https://www.youtube.com/watch?v=NFP--aVBrN8 Joint Liability Group: https://www.youtube.com/watch?v=EwHr4kbYtb4 Self Help Group: https://www.youtube.com/watch?v=Aw2E4wGC6XY Hypothecation: https://www.youtube.com/watch?v=LfyMNVKBttY Pledge: https://www.youtube.com/watch?v=SeOj8iSo1-E Banking Ombudsman https://www.youtube.com/watch?v=yk_qkutLzXY Internal rate of return https://www.youtube.com/watch?v=cgcY0vsINtE Protection to paying banker https://www.youtube.com/watch?v=T5E41Xd9rbs Letter of Credit and Its Types https://www.youtube.com/watch?v=kZG7KVz6ADA Legal and Regulatory Aspects of banking Imp Ques: https://www.youtube.com/watch?v=yHrxOa8W31A Accounting and finance imp Numerical: https://www.youtube.com/watch?v=oYDWCpmGJfw Banking Regulation Act 1949 Important Sections https://www.youtube.com/watch?v=5-acwfsYTAw Accounting and finance definitions and important concepts https://www.youtube.com/watch?v=9ZEtvgYVyPQ -~-~~-~~~-~~-~- Please watch: "Protection to Collecting Banker NI Act Legal and Regulatory Aspects of Banking JAIIB" https://www.youtube.com/watch?v=V-hiw3njkak -~-~~-~~~-~~-~-
Views: 16074 Learning sessions
Bond Valuation
 
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Bond Valuation
Views: 199392 Mark McCracken
All about Yield to Maturity JAIIB CAIIB [Hindi]
 
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Hello friends! In this video you will learn the following concepts of Accounting and Finance as well as for Advanced Bank Management. This way we'll cover module b Business Mathematics of Advance Bank Management of CAIIB. This is concept of time value of money. You'll also get the idea of Net present value. What is yield to maturity (YTM)? What is bond? How to calculate Yield to Maturity (YTM) ? Introduction of yeild to maturity Value a Bond and Calculate Yield to Maturity (YTM) Related terms to bond. Numerical on bond Value of bond JAIIB CAIIB BOND BASICS DIFFERENCE BETWEEN YIELD AND YTM Coupon rate face value Finding Yield to Maturity using Excel How to calculate yield to maturity?
Views: 37144 GrowYourself
Bond Valuation part 1
 
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Views: 120550 Rahul Malkan
The Calculation of Current Yield and Yield to Maturity
 
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This is a simple example for the calculation of current yield and yield to maturity of a bond.
Views: 22163 DrCaoMoney
Yield to maturity of a 2 period coupon bond
 
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How to use the quadratic formula or Wolfram Alpha to calculate the yield to maturity of a 2 period coupon bond.
Views: 3321 Rob Munger
Bond Valuation YTM Yield to Maturity - CA Final SFM (New Syllabus) Classes & Video Lectures
 
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For More Visit our website - https://sfmguru.in/ Buy Rewamp & revise the entire SFM in 1 day: https://sfmguru.in/revamp-ca-final-sfm-revision-book/ Subscribe to Channel for more videos: https://www.youtube.com/channel/UCiPzkqrzDsoq-pLrloT7Fcw/featured Yield to Maturity This is a rate of return which is generated by a bond over a period up to its maturity. If the future cash flows of interest and redemption price are discounted using YTM, the present value of such cash flows will be equal to its actual market price. In other words, a rate of discounting which can make the intrinsic value equal to the actual market price can be considered as YTM Rate. For example, if a bond is issued at par with face value of ` 1,000 and redeemable at par with coupon rate of 10% per annum is actually providing the yield of 10% per annum. In other words, the YTM of such bond shall be 10% per annum. However, in the same example if the bond is redeemable at premium, other things remaining same, it would obviously provide an yield higher than 10%. Annuity Bonds These bonds are paid over a period of time by the same amount of cash flows each year. Therefore, there is neither any coupon payment nor any redemption price. All the cash flows of these bonds are spread over their life by way of annuities. These are bonds which would repay the principal over its life along with interest by way of constant cash flows. For example, a bond that is issued at ` 1,000 with 5 years life provides an annuity of ` 260 per annum at end of each year over its life of 5 years. The total cash flows over 5 years will be (` 260 x 5) = ` 1,300 This includes the principal repayment of ` 1,000 and the total interest of ` 300. Changes in Intrinsic Value of Bond as it approaches its Maturity (Inter-relationship between Intrinsic value and Redeemable Value) The intrinsic value of the bond gets closer to the redemption price as and when the bond approaches its maturity. If a Premium Bond is redeemable at par, its intrinsic value constantly declines over time. If a Discount Bond is redeemable at par, its intrinsic value constantly rises over time. Zero Coupon Bonds (ZCB) These are bonds which do not provide any coupon payments. In other words, there is no interest payable on such bonds. These bonds are either issued at nominal discount or at par and redeemable at a significant premium. The present value of cash flows from this bond considers only the present value of redemption price which is its intrinsic value. With maturity date coming closer the intrinsic value of such bonds increases. Deep Discount Bonds (DDB) These are such zero coupon bonds, which are redeemable at par but issued at significant discount. Callable Bonds A callable bond is such a bond that provides an option to the issuer to call for redemption at an earlier date as compared to maturity. Such bonds are generally redeemed before maturity if the interest rate in the market declines. Inversely if the interest rate increases the issuer will opt for redemption of the bonds at the specified maturity date only. The call date is a specified date at which the issuer can call for premature redemption. The call price of a bond generally is higher than the redemption price payable on maturity, in order to compensate the investor. Yield to Call (YTC) YTC is applicable only for callable bonds. YTC is determined just like YTM. The only difference is, while determining YTC the applicable date of redemption will be the call date and not maturity date and the redemption value applicable at the call date shall be considered in place of redemption at maturity. #Bonds , #Finance , #CAFinal , #FinancialLearning , #CAFinalSFM , #StrategicFinancialManagement , #SFM ,
Views: 2568 CA Nikhil Jobanputra
Finding Bond Price and YTM on a Financial Calculator
 
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A brief demonstration on calculating the price of a bond and its YTM on a financial calculator
Finding Yield to Maturity using Excel
 
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An example of finding the YTM (yield to maturity) of a bond using the =RATE formula in Excel.
Views: 51864 Jeff Davis
Pricing a Bond with Yield To Maturity, Lecture 013, Securities Investment 101, Video 00015
 
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In this lecture, we price the same standard bond given three different ratings agency ratings, which has given us three different required overall yields to get from the bond, given the changing levels of risk. After explaining the theory of present valuing the different fixed cashflows, we then use an Excel spreadsheet to calculate the three different bond prices. The lecture finishes with an Excel chart which displays the relationships between coupon rate, flat yield, and yield to maturity, as well as highlighting the most important concept in bond trading; when required interest rates go up, bond prices go down, and when required interest rates go down, bond prices go up. For those who wish to know how to calculate a yield to maturity given a market bond price, see the next lecture. Previous: http://www.youtube.com/watch?v=-tN32FU3D_k Next: http://www.youtube.com/watch?v=hHR_GSEisRs 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: 48331 MithrilMoney
Bond Semi-annual Yield-to-Maturity
 
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Bond Semi-annual Yield-to-Maturity
Views: 14104 Prof. Mohammed Ahmed
Yield to Maturity - What is the Definition and Formula? - Financial Dictionary
 
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http://www.subjectmoney.com http://www.subjectmoney.com/definitiondisplay.php?word=Yield%20to%20Maturity Yield to Maturity is the Discount rate that is used to make the sum of the Bond's future payments equal to its market value. The yield to maturity is not the same as the coupon rate. The coupon rate is the interest rate that the borrower pays the lender and it is based on the par value of the bond. Yield to maturity is the return an investor expects if he or she were to purchase the bond today.
Views: 4476 VideoDefinition
Bonds - Yield to call - Example 1
 
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In this video, you will go through an example to find out the yield to call of a bond.
Views: 5809 maxus knowledge
CFA Level I- 2015 -Fixed Income : Calculation of bond price using spot,YTM, Forward Rate
 
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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 lecture was recorded by our popular trainer for CFA, Mr. Utkarsh Jain, during one of his live CFA Level I Classes in Pune (India).
Views: 15550 FinTree
Yield to Maturity Versus Rate of Return
 
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This video makes a clear distinction between two commonly conflated fixed income market concepts: yield to maturity and rate of return. Though often described as a measure of future returns and regularly used as a proxy for such, as ways of conceiving of yield to maturity those interpretations are respectively inaccurate and potentially problematic. The presentation illustrates the method for computing the two measures and identifies why they will likely never be the same for long-term coupon securities. InsidersGuideToFinance.com facebook.com/insidersguidetofinance
Types of Yield: Current Yield & Yield to Maturity
 
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There are several different types of yield you can use to compare potential returns on an investment. Chip Loughridge with Zions Direct explains Current Yield and Yield to Maturity, as well as when you would typically use these calculations. What did you think? Leave a comment or subscribe to our channel to continue building your investment knowledge. You can open an investment account and purchase stocks, bonds, CDs, mutual funds and more at www.zionsdirect.com or call us at 800-524-8875. Find us elsewhere: Roku – http://www.rokuguide.com/channels/zions-direct-tv Our Newsletter - https://www.zionsdirect.com/newsletter.php Our Blog – http://think.zionsdirect.com Twitter – http://www.twitter.com/ZionsDirectTV Facebook – http://www.facebook.com/ZionsDirect
Views: 15448 Zions TV
Bonds: Spot Rates vs. Yield to Maturity
 
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What's the difference between a spot rate and a bond's yield-to-maturity? In this video you'll learn how to find the price of the bond using spot rates, as well as how to find the yield-to-maturity of a bond once we know it's price. Simply put, spot rates are used to discount cash flows happening at a particular point in time, back to time 0. A bond's yield-to-maturity is the overall return that the investor will make by purchasing the bond - think of it as a weighted average!
Views: 6811 Arnold Tutoring
CAIIB - BFM - Learn to calculate YTM in 10 minutes
 
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In this video, the method to calculate YTM has been explained with example.
Views: 33335 Ns Toor
How to Price/Value Bonds - Formula, Annual, Semi-Annual, Market Value, Accrued Interest
 
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http://www.subjectmoney.com http://www.subjectmoney.com/definitiondisplay.php?word=Bond%20Pricing In this video we show you how to calculate the value or price of a bond. We teach you the present value formula and then use examples to discount the coupon payments and principle payment to their present value. We also show you how to solve the price of a semi-annual bond. In this case you would multiply the periods by two and divide the YTM and coupon payments by 2. We also show you how to solve the accrued interest of a bond to find out what it would sell for at a date that is not on the exact coupon payment date. https://www.youtube.com/user/Subjectmoney https://www.youtube.com/watch?v=7zCqoED8MVk http://www.roofstampa.com hjttp://roofstampa.com http:/www.subjectmoney.com http://www.excelfornoobs.com
Views: 86904 Subjectmoney
Calculating Yield To Maturity from a Bond Price, Lecture 014, Securities Investment 101, Video 00016
 
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We examine the theory behind how to calculate a required interest rate yield to maturity from a given bond price, then use three different methods in Excel to achieve the calculation. The methods used in Excel are the use of a scroller tied to an interest rate field, the built-in RATE() function, and the GoalSeek Excel tool. Previous: http://www.youtube.com/watch?v=C1b-UPfeBo0 Next: http://www.youtube.com/watch?v=j1Fq_1pg7xE 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: 20944 MithrilMoney
Zero Coupon Bonds
 
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This narrated PPT describes how a zero coupon bond works, along with an example of how to calculate the yield to maturity. We contrast the yield to maturity with the bond equivalent yield.
Views: 23812 Elizabeth Schmitt
YTM and YTC Calculations
 
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Views: 12084 rnrfinance
Excel Finance Class 48: Calculate YTM and Effective Annual Yield From Bond Cash Flows RATE & EFFECT
 
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Download Excel workbook http://people.highline.edu/mgirvin/ExcelIsFun.htm Learn how to Calculate YTM and Effective Annual Yield From Bond Cash Flows using the RATE & EFFECT Functions.
Views: 22302 ExcelIsFun
Par yield
 
10:03
The yield (aka, yield to maturity, YTM) is the single rate that correctly prices the bond; it impounds the spot rate curve. For each coupon bond, there is a different implied yield. The PAR YIELD is the yield (YTM) for a bond that happens to price at par, and therefore is equal to this bond's coupon. So, the par yield (as a special case or particular YTM) is the coupon rate on a bond priced at par.
Views: 18276 Bionic Turtle
Zero Coupon Bond
 
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An example of pricing a zero-coupon bond using the 5-key approach.
Views: 37149 Kevin Bracker
Bonds - YTM and YTC - calculation of Yield to Maturity and Yield to Call
 
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how to calculate Yield to Maturity of a Coupon paying bond How to calculate Yield to Call of a Coupon paying bond that is callable
Views: 4102 Elinda Kiss
Bond Pricing, Valuation, Formulas, and Functions in Excel
 
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Premium Course: https://www.teachexcel.com/premium-courses/68/idiot-proof-forms-in-excel?src=youtube Excel Forum: https://www.teachexcel.com/talk/microsoft-office?src=yt Excel Tutorials: https://www.teachexcel.com/src=yt This tutorial will show you how to calculate bond pricing and valuation in excel. This teaches you how to do so through using the NPER() PMT() FV() RATE() and PV() functions and formulas in excel. To follow along with this tutorial and download the spreadsheet used and or to get free excel macros, keyboard shortcuts, and forums, go to: http://www.TeachMsOffice.com
Views: 182392 TeachExcel
4 Usual Confusions in Bond Valuation: Tutorial for Bond Value in Valuing Bonds (super easy)
 
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OMG wow! I'm SHOCKED how easy! Clicked here http://www.youtube.com/watch?v=eE-vj43wHOQ No wonder others goin crazy sharing this??? What amount is best to be willing to pay for a bond? A bond's value is driven by impending cash flows you are likely to generate by possessing the bond. Where do the prospective cash flows come from? They come from 1) the coupon payments which symbolize cash earnings for the owner of the bond, and 2) the remuneration of principal ("face value" of the bond).Utilizing the Bond Valuation Formula and presuming a 5% level of interest from a bank, a bond that has a $1,000 face value and 4% coupon rate which might grant you $4 annually for 7 years plus enable you to recoup the $1,000 face value after 7 years should in truth maintain a fair value of $941... which happens to be obviously less than the $1,000 face value. Thus even if the face value is $1,000, you must be prepared to pay a maximum of only $941 to obtain this bond.(The formula is a bit complicated and concerns an abundance of aspects, such as the yield or yield to maturity, remaining time until maturity, not to mention different variables. You ordinarily don't need to actually do calculations by yourself if you're not in business school. There are loads of accessible calculators via the internet.)What exactly does the $941 earlier mentioned suggest? If you should pay more than $941 for this bond, you would be better off depositing your dollars in the bank instead. Put differently, in case you compensate beyond $941, your rate of return for maintaining this bond could possibly be under the bank interest rate of 5%. Consequently... it would be preferable to deposit in the bank.So when a bond is obtained or sold, is it acquired or sold at the face value or at the fair value?For the most part, if it happens to be the first time a bond is being issued and sold by the issuing firm in the primary bond market, it is carried out with the face value. However, in the secondary market, in the event the bond is purchased or sold by unique people, it is exchanged at market value, which is often differ from both the face value and fair value. The market value is basically what true persons are prepared to pay or deal for the bond, whether or not this is much less or greater than the face value and/or fair value. Normally though, the market value is nearer to the fair value than to the face value. Take into account however, that in the secondary market, a large component which impacts bond price is risk as symbolized by its credit rating, and this factor is not covered in the formula used to find out how to value a bond which has been referred to above. http://www.youtube.com/watch?v=eE-vj43wHOQ http://mbabullshit.com/blog/bond-valuation-in-35-minutes/
Views: 82422 MBAbullshitDotCom
Yield to Call
 
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An example of Yield-to-Call using the 5-key approach. Also discusses the call provision and when a bond is likely to be called.
Views: 35022 Kevin Bracker