Current Yield vs. Yield to Maturity at low prices

When comparing Current Yield to YTM (as calculated from the Excel Yield
() function), there are instances when Current Yield > YTM for
discounted bonds.  I can't seem to make sense of this.  For example,
the Current Yield for a $100 par-valued bond, with a 10% rate, and
price of 1 is 10.  But using the function Yield(11/1/09, 11/1/11, 10%,
1, 100, 4) gives a YTM of 9.35  I notice this is only happening with
extremely low-priced bonds.

I don't think there would ever be an instance when YTM < Current
Yield, except for bonds purchased at a premium, so could this is a
problem with the Yield() function not being accurate at very low
prices?
0
beariebird
11/19/2009 7:22:53 PM
excel.worksheet.functions 4936 articles. 2 followers. Follow

1 Replies
981 Views

Similar Articles

[PageSpeed] 29

YIELD returns 10.04. 

"beariebird" wrote:

> When comparing Current Yield to YTM (as calculated from the Excel Yield
> () function), there are instances when Current Yield > YTM for
> discounted bonds.  I can't seem to make sense of this.  For example,
> the Current Yield for a $100 par-valued bond, with a 10% rate, and
> price of 1 is 10.  But using the function Yield(11/1/09, 11/1/11, 10%,
> 1, 100, 4) gives a YTM of 9.35  I notice this is only happening with
> extremely low-priced bonds.
> 
> I don't think there would ever be an instance when YTM < Current
> Yield, except for bonds purchased at a premium, so could this is a
> problem with the Yield() function not being accurate at very low
> prices?
> .
> 
0
Utf
11/19/2009 8:50:04 PM
Reply:

Similar Artilces:

Documents & Settings vs. Users folders
OS: Vista Business; upgraded from Win XP Pro SP3. Joined to a WinSer 2003 domain. I just noticed that I have (near) identical files and folders in my C:\Documents and Settings folder and the C:\Users folder. Is this because it was an upgrade? Is there a way to eliminate one of them to free up some HD space? -- Mike Webb Platte River Whooping Crane Maintenance Trust, Inc. a conservation non-profit (501 (c)(3)) organization Wood River, NE In article <8B0B66B9-1E62-479D-BC74-BF79A50895E6@microsoft.com>, Mike_in_Nebraska@newsgroup.nospam says... > > OS: ...

Outlook 2003: You do not have permission to change the current timezone
Hi All, Here is my current setup: OS: Vista Business 32-bit Outlook: 2003 Server Env.: POP3, no exchange server When I try to change the current timezone, I get the error "You do not have permission to change the current timezone". I was able to do that when I have Windows XP. I've already disabled the user access control but it is still NOT ok. Can anyone give me some hints? Thanks. are you changing it within outlook's time zone dialog or vista's? did you upgrade vista over xp? are you logged in with a user or admin acct? if a user acct, open the control pa...

Document Date vs. Batch Date
Can someone explain to me the difference between document date and batch date. The way I understand it, the document date refers to the date the item will hit the subledger and the batch date (if batch date is the posting option) refers to the date the transaction will hit the general ledger. Is this correct? Does this mean that if I have all my periods open for a year and I enter a cash receipt transaction with a document date of 05/01/04 in a batch with a batch date of 06/01/04 that my subledger will not balance to my general ledger for that month? Elizabeth, You've got it ...

Extended Pricing
Here is our requirements: Item A,B,C belong to a class ClassABC. Item X, Y and Z belong to a class Class123. Item price for this customer is as follows: Item A: $2.85 Item B: $2.85 Item C: $2.85 Item X:$2.50 Item Y:$2.50 Item Z:$2.50 When customer wants to buy item A,B and X on an order, the prices are as follows. Item A: 2.35 Item B: 2.35 Item x: 2.50 Since, the customer is buying Item A and B both, they get discount on the price. For example, if the same customer was purchasing Item A and Item X on an order, the price would have been $2.85 for Item A and $2.50 for Item X. Another exa...

Amortization vs Cash Flow
My question involves a home loan where the amortization schedule and the cash flow forecast disagree. How do I reconcile the cash flow forcast? The amortization schedule, which is accurate, shows that I have sixteen months left to pay off the house. However the cash flow forecast does not reflect this. When I examine the scheduled bill for the mortgage payment, it says I have forty-four months left. I cannot modify the number of transactions remaining nor the date of final payment. The Forecast Cash Flow reflects the scheduled Loan Payment transaction which reflects the current Accou...

Filtered Mode Copying and pasting as value yield as error?
Dear All, While in filtered mode copying cell that consists formula and converting them into values yield as following error. Copy and paste area are not same so error. Is there any code or macro that can convert the cell consisting formula into value. Note:- The cell is in Filtered mode. Please assist? Rgds, Alighak06 I had the same problem and this macro worked for me, Range("------:------").Select Selection.SpecialCells(xlCellTypeVisible).Select Selection.Copy Range("------").Select Selection.PasteSpecial Paste:=xlPasteValues, O...

XP Icons in VS 2002
Similar question to an earlier post, but we have moved on... How can we open XP icons in Visual Studio. There are some sample XP icons here: http://www.icongalore.com/download/xp-icons.zip However if we try to open any of the 32bit icons in Visual Studio, they have a solid black border and any drop shadows also appear solid black. The icons look great in Windows Explorer, so what is the point of creating fancy XP icons, if we can't open them in the development environment! HELP! "GT" <ContactGT@hotmail.com> wrote in message news:4524e72b$0$6584$9a6e19ea@unlimite...

Prices set to Zero When Exported
Does any one know why my new store db store prices are all at $0.00 after exporting the store from HQ Administrator? Hi I have this problem before but when i creat worksheet style250:Update inventory-Item. It is fix try make it. "Darcy" <Darcy@discussions.microsoft.com> wrote in message news:83ACE9EA-5D44-47A9-B587-2F2D99E34C83@microsoft.com... > Does any one know why my new store db store prices are all at $0.00 after > exporting the store from HQ Administrator? Darcy, It crept into the program during one of their hotfixes. 1.3R fixes it. -- * Get Secure!...

03 vs 07: speed with different methods of referencing ranges?
I did some minor testing on 2003 with bringing in arrays as reference vs variant: Dim rng As Range Dim rng2 As Variant RowCount = lastRow(Sheet2) Set rng = Sheet2.Range("A1:Z" & RowCount) rng2 = Sheet2.Range("A1:Z" & RowCount).Value I then tested to see if processing on either was faster, using some simple math calculations on my range content. For my sample data, they were within a second of each other. My workbook will likely be used by coworkers in another state who have 2007, so I figured it would be wise to ask if anyone has noticed drama...

Highlite current/active cell
Excel 2000 I use Edit/Find frequently, but have a hard time seeing the 'found' cell. Is there a way to change the look (background color) used for the active cell? I have come across the "RowLiner" add-in and other fancy solution, but I would just like something simple, like changing the active cell color. Thanks here is a link with directions to highlight the active cell Highlight the Active Cell, by Andrew Siffert http://blog.livedoor.jp/andrewe/archives/50061563.html Warm Regards, Crystal remote programming and training Access Basics 8-part free tutorial that cove...

MS Query
I'd like to return only data by filtering a date field for any date past the current date. I can filter using [is greater than (>)] but it seems my only choices are a date that is already in the field or a static date I enter. I need to use an expression such as [CurrentDate] or [now()] but these don't seem to work in Microsoft query as they do in Access or Crystal. Microsoft Excel 2007 Sub filterplustoday() ActiveSheet.Range("A1").AutoFilter field:=1, _ Criteria1:=">" & Format(Date, "mm/dd/yyyy") End Sub -- Don Guillett Mic...

Outlook vs. Firewall Client
Many years use OE, first time trying Outlook.... And troubles are here. We use Firewall Client (ISA 2000, ISA 2004 - one of two channels possible to select) for internet access. Everything works fine, including OE. Install Outlook, setup client account and "Task 'mail.domianname.com - Receiving' reported error (0x80042108) : Outlook is unable to connect to your incoming (POP3) e-mail server. If you continue to receive this message, contact your server administrator or Internet service provider (ISP)." And this is strange: checking mail settings from similar window fro...

Mail vs. Post item in Public Folder
Ever since I switched to Exchange 2003 my public folders are only taking items as "Post" items, not Mail... that is true even though I create the folders as "Mail or Post items" folders. Can anyone shed some light? thanks Tim Tim wrote: > Ever since I switched to Exchange 2003 my public folders are only > taking items as "Post" items, not Mail... that is true even though I > create the folders as "Mail or Post items" folders. Can anyone shed > some light? > thanks > Tim Does this apply? http://support.microsoft.com/default.aspx?kbid...

date in database compare with the current date
Is that possible to create an alert function, that gives an alert message when a date in Access database is going to expired soon So I need this function to compare the date in database with current date when the dates are the same, it gives an warning msg on the web browser and is that possible to achieve that using Microsoft script editor? Hi, Sure, but you need to write code. The basic idea would be to check when the next event should occur, and run Schedule Tasks, or other tool, appropriately. Sure, you have to check that when the db is loaded, when a record is appended, modified, o...

Extended Pricing: User cannot create a new Price Sheet
Good afternoon, My client cannot successfully create new price sheets. They would create a new price sheet in the Price Sheet Maintenance window, select an item number then drill down into the Price Sheet Detail Maintenance window and key in the necessary options. After saving, when they click the Assign button back in the Price Sheet Maintenance window they are prompted the message "The Price Sheet ID does not exist. Do you want to create it?" This shouldn;t be the case. But then even when the user selects Yes, cursor would go back to Price Sheet Maintenance window and the Date Ran...

FRx vs. Advanced Financials
I have experience with FRx from non Great Plains packages. However, I am new to Great Plains and the Advanced Financials. What are the differences between these? What are the key advantages of one over the other? I am about to put together the new financials of my Company as part of my implementation - I would like to know which package I am best doing it in. If you are already familiar with FRx, I would recommend using it to create your financials. In my opinion FRx is much more robust and user friendly than AFA. "Adam" <Adam@discussions.microsoft.com> wrote in message...

Stocks near their 52 week low
Stocks near their 52 week low - 03/24/2006 For a list of stocks near their 52 week low, in Dow 30, Nasdaq 100, S&P 100, S&P 400 and S&P 500 indices. please go to: http://www.investment-tools.com and then click on "Enter Reports Area" button. Access to reports area is free. ...

Setting Security on CRM Price-Lists
I want to set security constraints so that each sales person is able to see/handle only certain price-lists and not all price-lists. The same also, I want that the each sales person be able to see/handle only certain products and not all products. Can I do the above 2 requirements? If yes, then how? If no, then is there a workaround for it and how? Thanks ...

How to SaveRecord working from VS tool in GP 9?
like detecting when a Transaction New or Is modified in SOP? -- IT - Developer ...

VS 2005 SP1
Hi, I just installed visual Studio 2005 SP1 and I am getting the HTTP 403 forbidden error. I am trying to upgrade a 2003 app to 2005. I have not been able to upgrade this project successfully. Any help is appreciated. Carl ...

Emailing Current Record
Hello all, I have a form that must be sent by email to a predetermined person once it is completed. It is important, however, that only the current record be sent. Is there a way to automate this by creating a Command Button? The Access Wizard creates the following code to allow you to print the form showing the current record. However, the Wizard it does not offer an option to email the current record. Private Sub Print_Current_Record_Click() On Error GoTo Err_Print_Current_Record_Click DoCmd.DoMenuItem acFormBar, acEditMenu, 8, , acMenuVer70 DoCmd.PrintOut acSelec...

This action is only valid for products that are currently installed
I have Outlook 2003 in Corporate mode. When ever I try to open a JPG attachment, I get the error "This action is only valid for products that are currently installed". I have tried "repairing" Office, and tried reinstalling the various filters and file formats, to no avail. Any ideas? -- Tim. Tim Munro <Excelsior@Liamtoh.moc> wrote: > I have Outlook 2003 in Corporate mode. Outlook 2003 doesn't have modes. > When ever I try to open a JPG > attachment, I get the error "This action is only valid for products > that are currently installed&...

Small Business vs. Professional for accounting integration
When I bought CRM, I was told I had to buy Professional to get the accounting integration. I run Small Business Server, and the Professional won't install on it, only the Small Business version (even though I have the Professional discs). So I just inquired, and found out that Small Business will work w/the upcoming accounting integration. (and is actually better b/c it integrates the faxing) I'm a little bummed that I had to buy a much more expensive product that I didn't need (& at the time, couldn't use). Is anyone feeling a bit burned by this change in versio...

Direct Email vs Quick Campaign
I have sent an email to my hotmail from CRM webclient using the direct email. It went to my junk mail. I sent an email to my hotmail from Quick Campaign and it did NOT go to my quick campaign. I sent the exact same email to my hotmail from Outlook and it did not go to junk mail. Obviously it is not the sender's email or domain or body of the email that is causing the issue. Why are direct emails being junked and not quick campaigns? Can this be avoided? ...

Mutual Fund Price $0
This is a multi-part message in MIME format. ------=_NextPart_000_0022_01C54352.B2858040 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable I am using MS$2004 Deluxe. Today I noticed that a fund in my portfolio = is showing a price of $0. Looking at the price update history of the = fund, it seems that the price is considered to be zero starting on = 04/13. If I click on the fund and go to Price History, it shows it = dropping to zero on the 13th. If I follow through and have Money take me = to MoneyCentral, the graph there shows the fund as...