Questions tagged [yield]
135 questions
29
votes
2 answers
What does "Yield Curve" mean?
In the financial news we often read about the Yield Curve. What exactly is it?
JoeTaxpayer
- 172,694
- 34
- 299
- 561
24
votes
3 answers
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 3/8/2023 for reference:
Katsu
- 525
- 4
- 11
18
votes
4 answers
Why would I buy a bond with a negative yield?
The only reason that I can think of is because I expect the bond to appreciate in price thus offsetting the loss in yield. I could still end up with less money than I started with, if I hold the bond until maturity. Ultimately, the only scenario…
Ellie K
- 4,473
- 1
- 25
- 50
17
votes
1 answer
Did Greece really issue bonds to investors yielding 42% interest?
I read this in the news regarding Greece's financial crisis:
The country’s 10-year bond yield fell 11 basis points to 8.04 percent
at 12:26 p.m. in Athens today. While that’s down from a record of 42
percent on the eve of the biggest debt…
user640916
- 459
- 4
- 8
9
votes
4 answers
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 about important changes to your account(s) and to the…
mafundly
- 93
- 1
- 4
8
votes
1 answer
Yield of a municipal bond with a sinking fund?
How do I calculate my expected return if I buy a municipal bond at a premium with a sinking fund feature?
For example, I'm looking at a bond with a coupon of 5.5%, maturing July 2015, with the following sinking fund schedule:
Date Price …
Tony the Pony
- 3,561
- 2
- 33
- 39
8
votes
1 answer
Is the US market really expecting less than 3% yearly inflation over the next 5 years?
Several people in my family are fearful of upcoming high inflation, perhaps due to the relatively high US inflation figures reported in the last few months (8%+). They think that the US inflation rate will be about 8% for the next few years. This…
Flux
- 17,301
- 12
- 74
- 138
7
votes
1 answer
Thorough Description of Yield to Maturity?
After some studies for the last month, I have encountered a concept that has just completely eluded me, and that is Yield to Maturity (YTM).
Can someone explain the purpose and reasoning behind this concept?
My background is that I am going into a…
Coolio2654
- 215
- 1
- 6
7
votes
2 answers
Need help with the concept of yield in a fund
There is a high possibility that I misunderstand the concept of yield, but from what I've gathered, are the following discoveries correct?
A fund with a share price of $10 that pays a dividend of $0.3 per share will have a yield of…
B Chen
- 1,029
- 2
- 8
- 12
6
votes
2 answers
Bond prices: Why is a high yield sometimes too good to be true?
Thank you for taking the time to explain me this.
I'm looking at bonds prices at Yahoo Finance (see attached image)
And it seems to good to be true: A-rated bonds at YTM rates of 11% and more. What am I missing here? Can I just go and buy these…
cruvadom
- 163
- 4
6
votes
2 answers
How does the 10 year U.S. Treasury bond work?
Can someone explain to me how these bonds work?
Are they released to the public at a certain price (face value) and interest rate, and the face value is what traded on in the market place, resulting in a change in the yield?
Does the yield determine…
Jon
- 639
- 4
- 9
- 16
5
votes
1 answer
Why bonds with lower coupon rates have higher interest rate risk?
According to the following article:
Bonds offering lower coupon rates generally will have higher interest rate risk than similar bonds that offer higher
coupon rates.
And:
For example, imagine one bond that has a coupon rate of 2% while another…
Ignorant
- 485
- 1
- 5
- 14
5
votes
2 answers
How to read bond yield quotes? What do the time, coupon, price, yield, and time mean?
I am newbie in finance and I recently saw Bloomberg bond yields quoted as follows:
Can anyone specify what "1 month" and "1 year" mean? What do coupon, price, yield and time (EDT) mean?
Abdus Salam Mazhar
- 53
- 4
5
votes
3 answers
How to calculate new price for bond if yield increases
I am learning for a class that is partly about finance and I don't have any background in finance at all.
I am struggling with a question that was asked in last years exam:
A bond trades at £1015, has a duration of 5 and yields 4.69%.
If yields…
icehawk
- 187
- 1
- 2
- 4
5
votes
1 answer
Bond : Difference between coupon and yield
On a bond chart, I always see the terms: Yield & Coupon, which seem to mean the same thing. What is the difference between these two terms?
Computernerd
- 962
- 7
- 17