Bond-equivalent yield, Financial Management

Normally, the cash flows from mortgage backed and assets-backed securities are obtained on monthly basis. Therefore, the yield calculated would be on a monthly basis. The monthly yield can be annualized as follows:

         Semiannual effective yield = (1 + monthly yield) 6 - 1                              

         Annual cash flow yield = 2 [(1 + monthly yield) 6 - 1]     

Posted Date: 9/10/2012 2:00:32 AM | Location : United States







Related Discussions:- Bond-equivalent yield, Assignment Help, Ask Question on Bond-equivalent yield, Get Answer, Expert's Help, Bond-equivalent yield Discussions

Write discussion on Bond-equivalent yield
Your posts are moderated
Related Questions
In this exercise you will construct efficient portfolios with 5 risky assets using Excel's non-linear optimization routing "Solver". The questions are designed to be sequential and

Peak Inc. needs to order Canadian raw materials to use in its production process. The Canadian exporter typically invoices Peak in Canadian dollars. Assume that the current exchang

what is saving and lone function in ethiopian context

Determine the Types of users Investors -look at the risk of their investment, future growth and profitability. Managers / employees-have access to more information and will want

Question 1 Swap is an agreement among two or more parties to exchange sets of cash flows over a period in future and What do you understand by swap? Describe its features, kind

How can the FX futures market be used for price discovery? Answer:  To the amount that FX forward prices are an unbiased predictor of future spot exchange rates, the market antic

In modern strategic management accounting it is important to use appropriate performance measurements and control concepts, underpinned by theories and models applied in a variety

The following is the existing capital structure of Company XYZ Ltd. Ordinary shares at Shs.10 par 1,000,000 Retained 800,000 12% preference shares Shs.10 par 400,000 16% loan Shs.1

Explain the term - Timing of Benefits A more significant technical objection to profit maximisation, as a guide to financial decision making, is that it ignores the differen

capital structure