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#reading-7-discounted-cashflows-applications

Question

The periodic yield for a zero coupon bond that matures in 5 years, r, is indicated by the equation Price = **[...]** .

Answer

Maturity value x (1 + r)^{-10}

This yield is an internal rate of return with semi-annual compounding.

This yield is an internal rate of return with semi-annual compounding.

Tags

#reading-7-discounted-cashflows-applications

Question

The periodic yield for a zero coupon bond that matures in 5 years, r, is indicated by the equation Price = **[...]** .

Answer

?

Tags

#reading-7-discounted-cashflows-applications

Question

The periodic yield for a zero coupon bond that matures in 5 years, r, is indicated by the equation Price = **[...]** .

Answer

Maturity value x (1 + r)^{-10}

This yield is an internal rate of return with semi-annual compounding.

This yield is an internal rate of return with semi-annual compounding.

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**Subject 5. Bond Equivalent Yield**

raight and zero-coupon bonds are conventionally computed based on semi-annual periods, as U.S. bonds typically make two coupon payments per year. For example, a zero-coupon bond with a maturity of five years will mature in 10 6-month periods. <span>The periodic yield for that bond, r, is indicated by the equation Price = Maturity value x (1 + r) -10 . This yield is an internal rate of return with semi-annual compounding. How do we annualize it? The convention is to double it and call the result the bond's yield to maturit

raight and zero-coupon bonds are conventionally computed based on semi-annual periods, as U.S. bonds typically make two coupon payments per year. For example, a zero-coupon bond with a maturity of five years will mature in 10 6-month periods. <span>The periodic yield for that bond, r, is indicated by the equation Price = Maturity value x (1 + r) -10 . This yield is an internal rate of return with semi-annual compounding. How do we annualize it? The convention is to double it and call the result the bond's yield to maturit

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
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repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

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