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Questions tagged [yield]

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1 vote
1 answer
79 views

Simple YTM calculation

I'm working the following problem, but getting the wrong answer. Any feedback appreciated. Suppose you bought a five-year zero-coupon Treasury bond for $800 per $1000 face value. Assume the yield to ...
Hank's user avatar
  • 11
2 votes
1 answer
1k views

Is the yield of a 30-year bond, issued 29 years ago and maturing in 1 year, equivalent to that of a 1-year bond maturing on the same date?

The question assumes both bonds are US Treasury bonds. I'm seeking clarity on whether the difference in original issuance date and remaining time to maturity impacts yield parity between these bonds. ...
StatsScared's user avatar
0 votes
1 answer
122 views

On coupon rate versus yield

I have seen the following roughly spelled out (or else tacitly used) in a few of my finance textbooks and I was hoping for confirmation and, ideally, a proof: Coupon rate equals APR of yield if and ...
EE18's user avatar
  • 121
0 votes
3 answers
70 views

Portfolio performance metrics in presence of cashflow [duplicate]

Given an investment portfolio and a ledger of withdrawls and deposits, I'd like to derive a performance metric that would allow me to compare its performance of a stock index. A randomly generated ...
Angstrom's user avatar
  • 101
5 votes
2 answers
797 views

How to think about yield for a annuity of fixed number of years which pays a predefined cashflow each year

Let's say I have an offer to pay $1000 now and for the next 20 years, I will receive the following payments: Year 1: $10 Year 2: $20 Year 3: $30 Year 4: $40 Year 5: $50 Year 6: $60 Year 7: $70 Year 8: ...
pathikrit's user avatar
  • 173
1 vote
1 answer
181 views

Why MBS has lower YTM than treasury bonds?

I just checked, VMBS (Vanguard MBS) has yield of 3.73%, but VGLT (Vanguard government long term bond) has yield of 5.08%. I thought MBS is riskier and would require higher YTM by the market.
ZEWEI CHU's user avatar
  • 111
0 votes
2 answers
158 views

What drives a yield curve shape?

I understand there are many factors that affect yield curve shape, let me help understand one. One is that 30y rate is an average 2y rate for the next 30y, with some additional premium. That premium ...
Medan's user avatar
  • 565
2 votes
1 answer
419 views

Understanding Implications of Return of Capital?

There is an ETF/fund I was looking at and I noticed a curious mix of what goes into their regular "dividend" payout. The amount consists of dividend income + long/short capital gains, and ...
AA040371's user avatar
  • 353
0 votes
1 answer
959 views

How to read CDs: price vs yield vs bid vs ask?

I'm trying to understand CDs by comparing the two: NAME CLOSING PRICE CLOSING YIELD CURRENT BID YIELD CURRENT BID PRICE CURRENT ASK YIELD CURRENT ASK PRICE Mountain Commerce Bank 99.68 5.694% 99....
Danijel's user avatar
  • 298
2 votes
0 answers
52 views

What is the difference between 7-day yield and gross 7-day yield of a money market fund?

Federated Hermes Government Reserves Fund Class A (GRAXX) has a 7-day yield of 3.96 while it has a gross 7-day yield of 4.84. I wonder what is the difference between two attributes and how are these ...
KnowledgeSeeeker's user avatar
9 votes
4 answers
4k views

What's up with banks closing down their high yield savings accounts and incentives lately?

We had been keeping our cash savings in a Purepoint high yield savings account for the past few years, until we got this email from them a couple months ago: "We’re reaching out to let you know ...
mafundly's user avatar
1 vote
2 answers
107 views

How is the yield of this particular bond calculated?

I am looking at this particular bond of coinbase company via Interactive Brokers website. Coinbase Bond ISIN : USU19328AA89 The rate of the bond is 3.4 so at the ask price of the bond at 62 the yield ...
Saugat Awale's user avatar
-3 votes
3 answers
355 views

Why is YTW (Yield-to-Worst) not available for some callable bonds?

E.g., I am looking at 67765QDG8 ("Oh St Wtr Dev Auth REV 5% 06/01/2023") on Schwab. It is callable but the yield to worse isn't indicated: Bond details: https://i.sstatic.net/GNt20.jpg (&...
Franck Dernoncourt's user avatar
24 votes
3 answers
6k views

If US Treasuries at yielding 4-5% right now, why can't I find an ETF that yields that amount?

If US Treasuries at yielding 4-5% right now, why can't I find a 1 month US Bond ETF or 6 month US Bond ETF that yields 4-5%? The best I can find is SGOV but it only yields 2%. Picture of US yields on ...
Katsu's user avatar
  • 525
0 votes
1 answer
158 views

Where can I find the indicative yield of soon-to-be-issued Treasury bonds on Charles Schwab?

In Vanguard, one may see the indicative yield of soon-to-be-issued Treasury bonds on https://personal.vanguard.com/us/FixedIncomeTrading: Where can I find the indicative yield for soon-to-be-issued ...
Franck Dernoncourt's user avatar

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