Lecture 6

bonds are typically a combination of an annuity and

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Unformatted text preview: e a price. That is the amount you actually pay to own the bond. • A bond’s Yield to maturity is the annual constant interest rate that makes it’s DPV of coupon and principal payments equal to its price. • A bond’s YTM is its IRR if you hold it to maturity. • YTM is a standardized way of reporting the price. DJIA 15,237.10 +111.04 0.73% S&P 500 1,703.20 +10.64 0.63% NASDAQ 3,791.87 +31.13 0.83% A recent yield curve (from Bloomberg’s website) O ur Company HO ME Q UICK Rates & Bonds NEWS O PINIO N US Treasuries Prof essional MARKET DATA UK Gilts Anyw here PERSO NAL FINANCE Germany Bunds TECH Japan Bonds PO LITICS Australia Bonds Search News, Quotes and O SUSTAINABILITY Bond Indexes LUXURY TV Corporate Bonds United States Government Bonds US Treasury Yields BO ND NEWS FUTURES IN FO 4 .0 0 2 .0 0 0 .0 0 3M 6M 12M 2Y 5Y - 2 .0 0 30Y 10Y Gold Floor May Be All the W Down at 1,200: Sm ith Tenor Coupon Pr ic e Las t 1 Month 1 Yea...
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This note was uploaded on 11/11/2013 for the course ECON 106F taught by Professor Atkeson during the Fall '05 term at UCLA.

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