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
Disclaimer of Opinion - Statement by an AUDITOR indicating inability to express an opinion on the fairness of FINANCIAL STATEMENTS provided and reason for the inability. The audito

Individual/Borrower Rating This includes rating a borrower to whom a loan/credit facility may be sanctioned.

Chi Square Distribution If the difference between actual and the expected frequencies is zero, the sampling distribution of the chi square statistic c 2  will be identical to a

Specialized Stock Indexes The most regularly quoted market indices are those that include the stocks of the largest listed companies on a nation's largest stock exchange. Examp


limitations of using a periodic inventory system

Question: (a) Describe the axioms of utility. (b) An economic agent has a logarithmic utility function, U(W) = lnw and has initial wealth $20,000. She is offered the subsequent g

Discuss the applicability of an operating cycle in cabbage growing business in Uganda.

The number of properties sold every month indicates that Thorne Co experiences seasonal trends in its business. There is an sign that property sales are at a low level in winter an

nestle is an orgnization wether bureacratic approach approperiate for the organizational performance or not?