Yield to Maturity
Autor: Liu Yiru • October 10, 2016 • Case Study • 335 Words (2 Pages) • 739 Views
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- Fed governor is speaking in Chicago on Monday before central bankers go into their traditional premeeting quiet period ahead Sept. 20-21 confab in Washington.
- Janet Yellen 8/26: the case for an increase in the fed funds rate has strengthened in recent months
- Fed rate hike pre-requisite: a)2 percent inflation b) a tightening labor market c)growth strong enough
- Non farm payroll came in at 151,000
- An ETF, or exchange traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold.
- A bond yield is the amount of return an investor realizes on a bond.
- Yield To Maturity (YTM)' The rate of return anticipated on a bond if held until the end of its lifetime. YTM is considered a long-term bond yield expressed as an annual rate. The YTM calculation takes into account the bond's current market price, par value, coupon interest rate and time to maturity.
- Usually the required yield on a bond is equal to or greater than the current prevailing interest rates. Fundamentally, however, the price of a bond is the sum of the present values of all expected coupon payments plus the present value of the par value at maturity.
- The Bank of Canada left its benchmark overnight rate unchanged at 0.5 percent at its September 7 2016 meeting as widely expected.The bank rate is correspondingly 0.75 percent and the deposit rate is 0.25 percent. Policymakers anticipate the economy to recover substantially in the second half of the year and said inflation is in line with the Bank's expectations.
- The jobless rate in Canada increased to 7 percent in August of 2016 from 6.9 percent in July. The figure came above market forecasts of 6.9 percent as 42.7 thousand people joined the labour force while employment increased by a better-than-expected 26.2 thousand jobs.
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