How to calculate annual yield for security?, Financial Management

Illustration 

The monthly yield of a mortgage backed security is 0.75%. Find out the annual yield for this security.

Solution

Annual yield = 2 [(1 + 0.0075)6 - 1]

         Annual yield = 9.17%.

Posted Date: 9/10/2012 2:01:53 AM | Location : United States







Related Discussions:- How to calculate annual yield for security?, Assignment Help, Ask Question on How to calculate annual yield for security?, Get Answer, Expert's Help, How to calculate annual yield for security? Discussions

Write discussion on How to calculate annual yield for security?
Your posts are moderated
Related Questions
How can we measure the Present Value When we solve for present value, rather than compounding the cash flows to the future, we discount future cash flows to present value to ma

Abnormal Earnings Valuation Model Abnormal Earnings Valuation Model is a method to analyse the value of the firm. The value of the firm can be the sum of three components - the

Contractual savings institutions Contractual savings institutions obtain funds at periodic intervals on a contractual basis. The industry is classified into two main groups ins

drow decision table of financee managment system

Why is the coefficient of variation a better risk calculates to use than the standard deviation while evaluating the risk of capital budgeting projects? The coefficient of variat

The price of a non-dividend paying share, St, follows a geometric Brownian motion process. The current price of the share is £10 and volatility of the share price process is 12% pe

Credit unions Credit unions are non-profit institutions jointly organised and owned by their members (depositors). Their main objective is to satisfy the depository and lending

Workers interest in participation is also influenced by certain personnel or group characteristics. For example several research studies have shown that both very low and very high

The effective maturity of a callable bond can be anywhere between the first call date and its maturity date due to the presence of the call feat

Question: (a) In the Strategic Planning Model, describe the various stages involved in the generation of capital projects in the public sector. (b) Outline the life cycle-co