Yield to Maturity vs Spot Rate

Yield to Maturity vs Spot Rate

There are mainly two important ways through which you can determine the value of a bond: Yield to maturity (YTM) and Spot Rate. The chosen methods depend on whether the investor wants to hold on to the bond or wish to sell it in the open market. Yield to maturity is...
Future Value Explained [With Example]

Future Value Explained [With Example]

Future value is defined as the value of an asset in the future at a specifies time. It is totally based upon the assumed rate of growth. A $50,000 investment invested today can result in $ 10,000,000 after 20 years if the growth rate is guaranteed. Hence , the future...
Floating Stocks [Explained]

Floating Stocks [Explained]

Floating stock refers to the number of shares available for trading in the market of a particular stock. Floating stock can be calculated by subtracting restricted stock and closely-held shares from a company’s total no. of outstanding shares. Closely-held shares are...
What is Convexity [Explained]

What is Convexity [Explained]

The measure of the degree of the curve between the relationship of Bond prices and bond yields is known as Convexity. Convexity helps us in demonstrating how the rate of interest changes with Bond. It is also used as a risk management tool by the portfolio managers to...
Bonds Dirty Price Explained

Bonds Dirty Price Explained

Before knowing about the Dirty price, we have to know about some basic terminology. Let’s look into that – Investment When a private company starts an entrepreneurial business or wants to enlarge the boundary or government takes an initiative, they need a...

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