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Bond Yields: Income earned from a bond.

Yield is the amount of annual interest expressed as a percentage of principal, which helps investors compare different investments. It shows how much income investors will receive on their investment. There are several ways to calculate yield, or, put differently, there are several yields.
Where the bond pays periodic interest, it equals the interest collected. Where a bond is sold at a discount on the par value, it equals the difference between the purchase price and amount received on bond's maturity date. Yield To Maturity(YTM): The annualized yield that is paid by the issuer over the life of the bond.
Yield to maturity (YTM) measures the annual return an investor would receive if he or she held a particular bond until maturity. formula:

Where: P = price of the bond n = number of periods C = coupon payment r = required rate of return on this investment F = maturity value t = time period when payment is to be received

Holding Period Return


The return on an investment during the time one holds the investment. The HPR is calculated by taking the income and other gains on the investment and dividing it by the historical cost. It is a useful way to compare the expected return to the actual return. The HPR may be calculated for any type of investment. It is also called the holding period yield (HPY).

The holding-period return (HPR) formula is the return an investor would get for holding a security for a specific period. HPR = (Pt + D / Pt-1) - 1 Where,

Pt is the stock price at the end of the period of time. D is the dividend payment.

Yield to Call (YTC):

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