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16:58
In this video, you will go through an example to find out the yield to call of a bond.
Views: 5807 maxus knowledge

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An example of Yield-to-Call using the 5-key approach. Also discusses the call provision and when a bond is likely to be called.
Views: 35020 Kevin Bracker

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Download Preston's 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location: http://www.amazon.com/gp/product/0982967624/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0982967624&linkCode=as2&tag=pypull-20&linkId=EOHYVY7DPUCW3WD4 http://www.amazon.com/gp/product/1939370159/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1939370159&linkCode=as2&tag=pypull-20&linkId=XRE5CA2QJ3I2OWSW In this lesson, we began to understand the important terms that truly value a bond. Since most investors will never hold a bond throughout the entire term, understanding how to value the asset becomes very important. As we get into the second course of this website, a thorough understanding of these terms is needed. So, be sure to learn it now and not jump ahead. We learned that there are two ways to look at the value of a bond, simple interest and compound interest. As an intelligent investor, you'll really want to focus on understanding compound interest. The term that was really important to understand in this lesson was yield to maturity. This term was really important because it accounted for almost every variable we could consider when determining the true value (or intrinsic value) of the bond. Yield to Maturity estimates the total amount of money you will earn over the entire life of the bond, but it actually accounts for all coupons, interest-on-interest, and gains or losses you'll sustain from the difference between the price you pay and the par value.
Views: 372834 Preston Pysh

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Bond Yield to Call
Views: 10278 Prof. Mohammed Ahmed

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A bond selling at a premium is very likely to be called early; therefore it will earn the Yield to Call not the Yield to Maturity or YTM.
Views: 4063 pjcalafi

10:47
In this video, you will learn the fundamentals to find out the yield to call of a bond
Views: 730 maxus knowledge

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For More Visit our website - https://sfmguru.in/ Buy Rewamp & revise the entire SFM in 1 day: https://sfmguru.in/revamp-ca-final-sfm-revision-book/ Subscribe to Channel for more videos: https://www.youtube.com/channel/UCiPzkqrzDsoq-pLrloT7Fcw/featured Yield to Maturity This is a rate of return which is generated by a bond over a period up to its maturity. If the future cash flows of interest and redemption price are discounted using YTM, the present value of such cash flows will be equal to its actual market price. In other words, a rate of discounting which can make the intrinsic value equal to the actual market price can be considered as YTM Rate. For example, if a bond is issued at par with face value of ` 1,000 and redeemable at par with coupon rate of 10% per annum is actually providing the yield of 10% per annum. In other words, the YTM of such bond shall be 10% per annum. However, in the same example if the bond is redeemable at premium, other things remaining same, it would obviously provide an yield higher than 10%. Annuity Bonds These bonds are paid over a period of time by the same amount of cash flows each year. Therefore, there is neither any coupon payment nor any redemption price. All the cash flows of these bonds are spread over their life by way of annuities. These are bonds which would repay the principal over its life along with interest by way of constant cash flows. For example, a bond that is issued at ` 1,000 with 5 years life provides an annuity of ` 260 per annum at end of each year over its life of 5 years. The total cash flows over 5 years will be (` 260 x 5) = ` 1,300 This includes the principal repayment of ` 1,000 and the total interest of ` 300. Changes in Intrinsic Value of Bond as it approaches its Maturity (Inter-relationship between Intrinsic value and Redeemable Value) The intrinsic value of the bond gets closer to the redemption price as and when the bond approaches its maturity. If a Premium Bond is redeemable at par, its intrinsic value constantly declines over time. If a Discount Bond is redeemable at par, its intrinsic value constantly rises over time. Zero Coupon Bonds (ZCB) These are bonds which do not provide any coupon payments. In other words, there is no interest payable on such bonds. These bonds are either issued at nominal discount or at par and redeemable at a significant premium. The present value of cash flows from this bond considers only the present value of redemption price which is its intrinsic value. With maturity date coming closer the intrinsic value of such bonds increases. Deep Discount Bonds (DDB) These are such zero coupon bonds, which are redeemable at par but issued at significant discount. Callable Bonds A callable bond is such a bond that provides an option to the issuer to call for redemption at an earlier date as compared to maturity. Such bonds are generally redeemed before maturity if the interest rate in the market declines. Inversely if the interest rate increases the issuer will opt for redemption of the bonds at the specified maturity date only. The call date is a specified date at which the issuer can call for premature redemption. The call price of a bond generally is higher than the redemption price payable on maturity, in order to compensate the investor. Yield to Call (YTC) YTC is applicable only for callable bonds. YTC is determined just like YTM. The only difference is, while determining YTC the applicable date of redemption will be the call date and not maturity date and the redemption value applicable at the call date shall be considered in place of redemption at maturity. #Bonds , #Finance , #CAFinal , #FinancialLearning , #CAFinalSFM , #StrategicFinancialManagement , #SFM ,
Views: 2563 CA Nikhil Jobanputra

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​In this revision video we work through some numerical examples of the inverse relationship between the market price of fixed-interest government bonds and the yields on those bonds. ​Government bonds are fixed interest securities. This means that a bond pays a fixed annual interest – this is known as the coupon The coupon (paid in £s, \$s, Euros etc.) is fixed but the yield on a bond will vary The yield is effectively the interest rate on a bond. The yield will vary inversely with the market price of a bond 1.When bond prices are rising, the yield will fall 2.When bond prices are falling, the yield will rise - - - - - - - - - MORE ABOUT TUTOR2U ECONOMICS: Visit tutor2u Economics for thousands of free study notes, videos, quizzes and more: https://www.tutor2u.net/economics A Level Economics Revision Flashcards: https://www.tutor2u.net/economics/store/selections/alevel-economics-revision-flashcards A Level Economics Example Top Grade Essays: https://www.tutor2u.net/economics/store/selections/exemplar-essays-for-a-level-economics
Views: 50500 tutor2u

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How to find the yield to call on premium bonds with a financial calculator. This problem is from the 2nd Exam - Additional practice questions
Views: 6055 pjcalafi

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The current yield and yield to maturity (YTM) are two popular bond yield measures. The current yield tells investors what they will earn from buying a bond and holding it for one year. The yield to maturity (YTM) is the bond's anticipated return if held until it matures.
Views: 96061 Investopedia

02:37
Sometimes firms call their bonds (i.e., payoff bondholders) early before maturity to retire old debt at high interest rates and replace it with new debt at low interest rates. This video solves for the yield to call in these cases.
Views: 47 1sportingclays

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This video will show you how to calculate the bond price and yield to maturity in a financial calculator. If you need to find the Present value by hand please watch this video :) http://youtu.be/5uAICRPUzsM There are more videos for EXCEL as well Like and subscribe :) Please visit us at http://www.i-hate-math.com Thanks for learning
Views: 298653 I Hate Math Group, Inc

06:54
What's the difference between a spot rate and a bond's yield-to-maturity? In this video you'll learn how to find the price of the bond using spot rates, as well as how to find the yield-to-maturity of a bond once we know it's price. Simply put, spot rates are used to discount cash flows happening at a particular point in time, back to time 0. A bond's yield-to-maturity is the overall return that the investor will make by purchasing the bond - think of it as a weighted average!
Views: 6804 Arnold Tutoring

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http://www.subjectmoney.com http://www.subjectmoney.com/definitiondisplay.php?word=Yield%20to%20Call For callable Bonds investors are interested in the Yield to Call . This is because if interest rates fall below the coupon rate of the bond then the firm is likely to repurchase the bond and issue new bonds at lower interest rates. Callable Bond s have a protection period where they cannot be repurchased however there is also sometimes an implicit form of call protection for bonds that are selling at deep discounts below their call price. If this is the case then even if interest rates drop a firm might not call the bond because their call price is more than the bond's market value so calling the bonds would not be beneficial to the firm. Bonds that are selling at a premium compared to their call price are much more likely to be called, therefore investors that hold Premium Bonds are much more interested in the yield to call than the Yield to Maturity . The yield to call is calculated the same as the yield to maturity is calculated except the time to call replaces the time to maturity and the call price replaces the par value. If a bond's call protection expires 3 years from today and the yield to maturity is 10 years then we would use 3 years for the time period to calculate the yield to call and the time to maturity to calculate the yield to maturity.
Views: 2298 VideoDefinition

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This video makes a clear distinction between two commonly conflated fixed income market concepts: yield to maturity and rate of return. Though often described as a measure of future returns and regularly used as a proxy for such, as ways of conceiving of yield to maturity those interpretations are respectively inaccurate and potentially problematic. The presentation illustrates the method for computing the two measures and identifies why they will likely never be the same for long-term coupon securities. InsidersGuideToFinance.com facebook.com/insidersguidetofinance

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In this video, you will learn to find out current yield for a bond.
Views: 4503 maxus knowledge

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There are several different types of yield you can use to compare potential returns on an investment. Chip Loughridge with Zions Direct explains Current Yield and Yield to Maturity, as well as when you would typically use these calculations. What did you think? Leave a comment or subscribe to our channel to continue building your investment knowledge. You can open an investment account and purchase stocks, bonds, CDs, mutual funds and more at www.zionsdirect.com or call us at 800-524-8875. Find us elsewhere: Roku – http://www.rokuguide.com/channels/zions-direct-tv Our Newsletter - https://www.zionsdirect.com/newsletter.php Our Blog – http://think.zionsdirect.com Twitter – http://www.twitter.com/ZionsDirectTV Facebook – http://www.facebook.com/ZionsDirect
Views: 15447 Zions TV

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Here is the third video in my new bond series. I have other videos showing the calculations using the HP10BII, TI-84, and the BAII.
Views: 1683 rnrfinance

03:35
Learn how to calculate yield to call on a bond.
Views: 180 Jaime Lancaster

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In this introductory lecture, we explain the conceptual framework behind 'Yield To Maturity' and why it is conceptually different from 'Flat Yield'. In the next two lectures, we will further explore the ideas put forward in this lecture, and both price a bond, given a yield to maturity input, and calculate a yield to maturity, given a bond price input. Previous: http://www.youtube.com/watch?v=J0QNupJbBsw Next: http://www.youtube.com/watch?v=C1b-UPfeBo0 For financial education from London to Singapore and beyond, please contact MithrilMoney via the following website: http://mithrilmoney.com/ This MithrilMoney lecture was delivered by Andy Duncan, CQF. Please read our disclaimer: http://mithrilmoney.com/disclaimer/
Views: 49405 MithrilMoney

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Views: 77429 Edspira

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This is a simple example for the calculation of current yield and yield to maturity of a bond.
Views: 22163 DrCaoMoney

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In this video, you will go through an example to find out the yield to call of a bond.
Views: 551 Maxus Financial

04:45
how to calculate Yield to Maturity of a Coupon paying bond How to calculate Yield to Call of a Coupon paying bond that is callable
Views: 4101 Elinda Kiss

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In this video, you will learn to find out yield to maturity for a bond.
Views: 13376 maxus knowledge

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In this video, you will learn to find out current yield for a bond.
Views: 5209 maxus knowledge

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How to calculate the yield to call on a callable bond using Excel and the Texas Instruments BAII calculator. (Recorded with http://screencast-o-matic.com)
Views: 1479 David Johnk

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Yield to maturity (YTM, yield) is the bond's internal rate of return (IRR). It is the rate that discounts future cash flows to the current market price. For more financial risk management videos, visit our website at http://www.bionicturtle.com
Views: 221832 Bionic Turtle

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Given four inputs (price, term/maturity, coupon rate, and face/par value), we can use the calculator's I/Y to find the bond's yield (yield to maturity). For more financial risk videos, visit our website! http://www.bionicturtle.com
Views: 131733 Bionic Turtle

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This video from N S TOOR School of Banking, explains the concept of Yield to Maturity. It also provides a case study to understand the concept of YTM
Views: 177194 Ns Toor

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We examine the theory behind how to calculate a required interest rate yield to maturity from a given bond price, then use three different methods in Excel to achieve the calculation. The methods used in Excel are the use of a scroller tied to an interest rate field, the built-in RATE() function, and the GoalSeek Excel tool. Previous: http://www.youtube.com/watch?v=C1b-UPfeBo0 Next: http://www.youtube.com/watch?v=j1Fq_1pg7xE For financial education from London to Singapore and beyond, please contact MithrilMoney via the following website: http://mithrilmoney.com/ This MithrilMoney lecture was delivered by Andy Duncan, CQF. Please read our disclaimer: http://mithrilmoney.com/disclaimer/
Views: 20940 MithrilMoney

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Free Online Textbook @ https://businessfinanceessentials.pressbooks.com/ An example of calculating Yield-to-Maturity using the 5-key approach.
Views: 135816 Kevin Bracker

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Views: 12915 Ronald Moy

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Views: 64988 Learning sessions

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http://www.learnbonds.com/yield-to-maturity/ - Yield to maturity takes into account both the coupon interest payment you receive on the bond, changes in the value of the bond as it moves towards maturity, and the return received on the reinvestment of interest payments.
Views: 9810 Learn Bonds

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Example: Suppose you have a risk-free bond that has a face value of \$100, a two year maturity, pays a 3 percent coupon with semiannual coupons. The bond is currently trading at \$97. What are the stream of cash flows associated with the bond? What is the yield to maturity.

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An example of finding the YTM (yield to maturity) of a bond using the =RATE formula in Excel.
Views: 51862 Jeff Davis

11:53
Estimating the yield to maturity using Interpolation.
Views: 1687 Brian Byrne

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Hello friends! In this video you will learn the following concepts of Accounting and Finance as well as for Advanced Bank Management. This way we'll cover module b Business Mathematics of Advance Bank Management of CAIIB. This is concept of time value of money. You'll also get the idea of Net present value. What is yield to maturity (YTM)? What is bond? How to calculate Yield to Maturity (YTM) ? Introduction of yeild to maturity Value a Bond and Calculate Yield to Maturity (YTM) Related terms to bond. Numerical on bond Value of bond JAIIB CAIIB BOND BASICS DIFFERENCE BETWEEN YIELD AND YTM Coupon rate face value Finding Yield to Maturity using Excel How to calculate yield to maturity?
Views: 37141 GrowYourself

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Callable bond is a type of bond that allows the issuer of the bond to retain the privilege of redeeming the bond at some point before the bond reaches the date of maturity.[1] In other words, on the call dates, the issuer has the right, but not the obligation, to buy back the bonds from the bond holders at the call price. Technically speaking, the bonds are not really bought and held by the issuer but cancelled immediately. Call price will usually exceed the par or issue price. In certain cases, mainly in the high-yield debt market, there can be a substantial premium. See there for more details. The issuer has an option, for which he pays in the form of a higher coupon rate. If interest rates in the market have gone down at the time of the call date, the issuer will be able to refinance his debt at a cheaper level and so will call the bonds. Another way to look at it is that as interest rates have gone down, the price of the bond has gone up. Therefore, it is advantageous to buy the bonds back at the par value. What this means exactly is that a callable bond will always be sold at the highest price but to the most prominent bidder. The issue regarding the bond will almost always result in detrimental circumstances for the parties involved in the merger or acquisition of the bond. The investor has the benefit of a higher coupon than he would have had with a straight, non-callable bond. On the other hand, if interest rates go down, the bonds get called, and he can only invest at the lower rate. This is comparable to selling an option—you get a premium upfront, but you have downside if the option gets exercised. The largest market for callable bonds is that of issues from the government sponsored entitites, better known as U.S. Agencies. They own a lot of mortgages and mortgage-backed securities. In the U.S. mortgages are usually fixed rate, and can be prepaid early without cost, contrary to other countries. If rates go down, a lot of home owners will refinance at a lower rate. This means that the Agencies lose assets. By issuing a large number of callable bonds, they have a natural hedge, as they can then call their own issues and refinance at a lower rate. The price behaviour of a callable bond is the oppsite of that of puttable bond. Since call option and put option are not mutually exclusive, a bond may have both options embedded.
Views: 11869 mbacalculator

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In this video, I discuss how to interpret a common Series 7/66 question on Yield to Maturity. Concepts covered: nominal rate, coupon, current yield, yield to maturity, bond see-saw, inverse relationship between prices and yields, bonds, formulas for the test. Visit my website and social media for additional help & resources: website: http://www.basicwisdom.net twitter: https://twitter.com/thebasicwisdom instagram: https://www.instagram.com/basicwisdom/ facebook: https://www.facebook.com/basicwisdom/
Views: 1297 Basic Wisdom

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Bond Semi-annual Yield-to-Maturity
Views: 14103 Prof. Mohammed Ahmed

10:47
In this video, you will learn the fundamentals to find out the yield to call of a bond.
Views: 24 Maxus Financial

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02:10
For callable bonds investors are interested in the yield to call. This is because if interest rates fall below the coupon rate of the bond then the firm is likely to repurchase the bond and issue new bonds at lower interest rates. Callable bonds have a protection period where they cannot be repurchased however there is also sometimes an implicit form of call protection for bonds that are selling at deep discounts below their call price. If this is the case then even if interest rates drop a firm might not call the bond because their call price is more than the bond's market value so calling the bonds would not be beneficial to the firm. Bonds that are selling at a premium compared to their call price are much more likely to be called, therefore investors that hold premium bonds are much more interested in the yield to call than the yield to maturity. The yield to call is calculated the same as the yield to maturity is calculated except the time to call replaces the time to maturity and the call price replaces the par value. If a bond's call protection expires 3 years from today and the yield to maturity is 10 years then we would use 3 years for the time period to calculated the yield to call and the time to maturity to calculate the yield to maturity. https://www.youtube.com/user/Subjectmoney https://www.youtube.com/watch?v=oNTqoxoyX5E
Views: 2293 Subjectmoney

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In this video, you will learn the fundamentals to find out the yield to maturity of a bond. You will also learn about perpetual bonds.
Views: 873 maxus knowledge

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Video provides step-by-step instructions for finding the yield of a corporate bond using the Texas Instruments BA-II Plus Calculator
Views: 125767 Jim McIntyre