Question
Which of the following describes the most significant
technical difference between the Current Yield and the Yield to Maturity (YTM) of a bond?Solution
Current Yield is calculated by dividing the annual coupon by the current market price, ignoring the time value of money and the eventual gain or loss on principal. Conversely, YTM is a more comprehensive measure that reflects the total return anticipated if the bond is held until maturity, incorporating the current price, par value, coupon payments, time to maturity, and the assumption that all coupons are reinvested at the same rate.
In the following question the relationship between different elements is given in the statements followed by three conclusions I, II and III. Read the...
Statements:
A < R ≤ M =S; U > L = T; A < L = O > E
Conclusions:
I). U > E
II). L > M
...Statements: U % X, X & S, S $ J, J # L
Conclusions: I. U & S II. S # L
...In the question, assuming the given statements to be true, find which of the conclusion (s) among given two conclusions is/are definitely true and then...
In the question, assuming the given statements to be true, find which of the conclusion (s) among given three conclusions is/are definitely true and th...
In the question, assuming the given statements to be true, find which of the following conclusion(s) among the three conclusions is/are true and then g...
Statements: R < Y ≤ G = S ≥ T; L ≥ O = S < W ≤ U
Conclusions:
I. R < W
II. T ≤ L
Statement: N = P ≤ Q; R ≥ Q < U
Conclusions: I. N < U II. R ≥ N
...In the question, assuming the given statements to be true, find which of the conclusion (s) among given three conclusions is /are definitely true and ...
Statement: A ≤ B ≤ C > D; E < D; F > E
Conclusions: I. D > A II. E < C
...
