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
Why does a tax create a deadweight loss?  What determines the size of this loss? A tax makes deadweight loss by artificially increasing price above the free market level, so de

#qSeven years ago, after 15 years in public accounting, Stanley Booker, CPA, resigned his posiition as Manager of Cost Systems for Davis, Cohen, and O''''''''Brien Public Accountan

Explain about the debt policy Designing debt policy the debt policy of a firm is significantly influenced by the cost consideration. In designing financing policy, that is, p

"A" Round Financing "A" Round Financing is the first main round of business financing through private equity investors or venture capitalists. In private equity investing, an "

Benjamin Tang currently has holdings in the following three companies:                                                                             E(R)                      σ

Illustration Consider a Rs.1,000 par value bond whose current market price is Rs.850. The bond carries a coupon rate of 8% and has a maturity period of 9 years. Wha

Hi I have been working in this for 2 weeks now and I just can''t seem to figure it out. ok lets say Bill is 40 yrs old. His made 72,000 last year had 60,000. in annual expenses,

Determine the term- Time Value of Money If an individual behaves rationally, then he wouldn't equate money in hand today with same value a year from now. As a matter of fact, h

Question : (a) A project must have a useful purpose. Therefore, as a project is evaluated, the team should determine the requirements of the local community and industry. These

Q. Illustrate report on cash flow budget? The cash flows The principal reason why certain statistics were not included in the cash flows is that they are incremental cash