Using the IRR func1ion in Excel, can we calculate the yield to maturity?

Q: Explain the differences between yield-to-maturity and yield-to-call

A: While both yield to maturity and yield to call are related to bonds they are not the same thing.

Q: Define yield curve

A: Yield is the percentage of securities at which the return is provided by the company to its…

Q: Explain the term Annual Effective Yields?

A: Annual effective yield: Annual effective yield is defined as the simple rate of interest that gives…

Q: An investor concerned whether a company can meet its near-term obligations is most likelyto…

A: An investor concerned whether a company can meet its near-term obligations is most likelyto…

Q: Describe what the zero-coupon yield curve measures. Quickly sketch what you expect the likely shape…

A: A zero-coupon yield curve describes a zero-coupon yield bond which pays no coupon. Yield from zero…

Q: How can we find Yield to maturity?

A: Yield to maturity (YTM) is the foreseen absolute profit for a bond if the bond holds until due or…

Q: A special case of the Internal Rate of Return (IRR) is the Yield to Maturity (YTM). Explain how the…

A: A yield curve plots the yield, or interest rates, of bonds with comparable credit grade but various…

Q: Please solve using Rate of Return method.

A: Rate of return is the rate at which return is expected from any investment. This defines the gain or…

Q: The CAPM model can be used to derive the cost сapital. A. Equity B. Borrowed С. Total D. Unlimited

A: The CAPM (capital assets pricing model) is a technique that helps to derive the cost of capital with…

Q: Factors that Affect Yield to Maturity

A: A bond's yield to maturity depends basically on its present value, coupon rate and the time to…

Q: Present using the rate of return method (ROR) with the formula. If the NPV is used to determine the…

A: Here, Net Cash Flow is  31250 Rate of Interest is 10% Initial Investment is 100000 NPV is 18462…

Q: dentify the decision rule that best fits each of the following descriptions.    Dollar profit…

A: IRR is internal rate of return at which NPV is zero.

Q: How do maturity risk premiums affect the yield curve?

A: A premium, which a borrower pays to the lender in the form of compensation of interest rate…

Q: Write a general expression for the yield on anydebt security (rd) and define these terms: real…

A: The real risk-free rate of interest: It is risk-free interest after inflation rate alteration. Let's…

Q: Breifly explain what "playing the yield curve" means.

A: The yield on a bond refers to the annual return that one gets as a bond matures. A yield curve is a…

Q: The single sum, present worth factor: a. Can be depicted as (1 + i)−n b. Can be depicted as (P|F…

A: Today’s worth of dollars at a later date is the Present Value of the dollar. For example, the value…

Q: Describe the intuition behind the Gordon growth model and the CAPM. What are the theoretical and…

A: Valuation of stock: Equity valuation refers to all tools and methodologies used by investors to…

Q: Explain APY (annual percentage yield)?

A: APY (Annual Percentage Yield):   It is the real return rate that is earned on an investment during a…

Q: Whatis a yield curve?

A: It is the percentage of the securities at which the return is provided by the company to its…

Q: Do you think that these techniques can be used in situations like COVID-19 capital budgeting  1.…

A: Capital budgeting techniques are used to analyze the profitability of long term projects and…

Q: How to calculate yield to maturity

A: Yield to Maturity: The yield to maturity (YTM) of a bond is the cumulative return expected if the…

Q: The formula of which of the following considers the percentage change in price? a. Total expected…

A: Percentage change in price Percentage change in price involves two prices of two different periods.…

Q: What is a yield curve? What does it mean when the yield curve is inverted?

A: Yield curve tells the relationship between the short term interest rates and long term interest…

Q: Describe the advantages of the dollar-value LIFO method.

A: Definition:   Dollar value LIFO method: In this method, the valuation of inventory is calculated on…

Q: iven the information below, calculate the reward-to-risk ratio implied by the CAPM pricing model.

A: The risk-reward ratio determines how much reward is there for risk of  every dollar.

Q: How can we calculate the Rate-of-Return with Excel?

A: The question is based on the concept of calculation of rate of return (ROR), (ROR) is percentage…

Q: Explain how a yield curve is constructed.

A: Yield curve is referred to as the line, which used to plot yields that are interest rates of the…

Q: A) What was your expected yield to maturity? B) What was your actual rate of return?

A: The yield to maturity (YTM) is the annual percentage rate of return on a bond if the investor…

Q: Define yield.

A: Yield can be considered as a metric for cash flow for the investor on the amount with which a…

Q: Define yield to maturity (YTM)

A: Bond is a financial instrument. Issuer issues bond to raise the fund and payback the amount at the…

Q: How do you calculate yield to maturity?

A: The yield to maturity is nothing but the interest rate of a bond. It can also be termed as the…

Q: /hy is yield to maturity more important than coupon rate when nmes to honds?

A: In bonds there are coupon payments paid each year and par value on the maturity of the bond.

Q: a. Plot a yield curve based on these data. b. What type of yield curve is shown? c. What information…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Explain the difference between the yield to maturity and the yieldto call.

A: Bonds are the fixed income securities issued by the government or companies to raise funds from the…

Q: praş Calculate their yield to maturity.

A: Note : As per the guidelines, only first question will be answered. Kindly post the remaining parts…

Q: Production opportunities; time preferences for consumption; risk; inflation

A: because you have posted multiple questions, we will answer the first question only, for the…

Q: a. Find the NPV at 15% effective. b. Find the internal rate of return.

A: Information Provided: Initial outflow = -$205,000 ($130,000 + $75,000) Year 1 - Year CF = $50,000…

Q: Use the ‘Liquidity Premium Theory’ to explain the shape of the yield curve.

A: Liquidity Premium Theory states that investors will require a higher rate of return(interest rate or…

Q: Explain an upward sloping yield curve using the pure expectation theory.

A: Pure expectation theory: Pure expectation theory states that expected future spot rates will be…

Q: Explain with example the Yield to Maturity?

A: A bond is a financial instrument that is issued by the government and the corporate to raise the…

Q: Calculate Paulson's WACC using market-value weights.

A: WACC is the weighted average of the cost of capital employed in a company. A company capital is…

Q: Recognize the distinctions among yieldto maturity, currentyield, rate of return,and rate of…

A: Introduction: The terms yield to maturity & current yield are associated with bonds.Bonds are…

Q: Define dollar-value LIFO (DVL) and explain its advantages.

A: Dollar-value LIFO is an accounting method used for inventory that follows the last-in-first-out…

Q: Briefly explain the investment assumptions that are used to calculate the current yield and yield to…

A: Current Yield refers to returns earned during the year in the form of interest or dividend as a…

Q: What is the difference between yield to maturity and current yield? Explain

A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.