I listened 100 videos on this topic but this is the CLEAREST and the only one which helped me understand! Thanks :D

Watched many videos on this, yours is the clearest and easiest to understand. Thank you.

Thank you! I had been doubling the number for N for semi annual payments. Now I see what I had been doing wrong. Thanks so much!

Explaining the premium and discount piece made this click for me. Thanks!

Exceptional clarity! Thank you!:)

Excellent video. Explained very well.

This helped a lot, thank you so much.

Very helpful, thank you!

That's a great video to understanding for YTM

wonderful, thanks for the in-depth explanation!!

THANK YOU..... VERY MUCH !!!!!!!!

Excellent, Thank you

thank you so much it helped

It was very helpful and especially with what is going with SVB on 03/10/2023

sick explanation

really helpful, thansk

As said just below, your video is the best at explaining all this. Thanks. One thing...none of my bonds were bought anywhere near the time when they were first issued. As such, I'm not sure how to tweak your formula for number of periods held instead of number of years. I then used Excel's RATE formula and it was spot on compared to a manual calculation of annualized yield.

Sir, I'm doing fin 222 in uowd and this was taught by my prof a few weeks ago and I couldn't understand it at all but your explanation is literally making me cry from relief 💀 thank you so much

@TheCompleteGuide1

2 жыл бұрын

Glad it helped and you understand it now

@SaeedG1999

2 жыл бұрын

@@TheCompleteGuide1 Passed it!

@TheCompleteGuide1

2 жыл бұрын

@@SaeedG1999 Great. Well done!

Thank you, but you should use consistent casing for the letters. On the other hand, this the best explanation I ever seen. Congrats.

Great vídeo, buddy!

@Diahann819

Жыл бұрын

I’m not your buddy, guy

helped for my series 65

thank u!!!!

Can you please tell us how you got the formula that you have mentioned at 11:25 ?

Can you explain the meanings and the calculations of the running yield and the holding period return?

YTM? More like TYSM! This was an excellent video; thanks for sharing.

So what if you buy the bond AFTER some the coupons have been paid to the previous owner. In the simple equation I'd expect that you just lower n to whatever payments are left. In the example, the bond pays 5 coupons, but if 2 of them have already been paid, then your n=3. But what does that do to more accurate equation which is already not easy to solve?

What if I'm trying to calculate annual payments instead of semi-annual payments?

@adityamisra7702

Жыл бұрын

just multiply it by 2 and u get the annual thing

Question! C=$50, F=$1000, P=$900, n=5 . According to the formula that makes YTM as 7.37% and the profit as $368.50, but..... the actual profit is $350. How is that happened? Where are the $18.50 came from? Who is paying that difference? Am I doing something wrong?

Do you mean I can make profit if I buy lower than face value from stock market and hold to maturity?

@TheCompleteGuide1

2 жыл бұрын

Yes. However bonds trading below par are higher risk. Skilled distressed debt investors do very well.

Sorry it's too deep for me. I'm shopping for a municipal bond. It says Current Yield = 4.966%, Yield to Maturity = 2.037%, Yield to Worst - 2.037%. If I buy the bond now and hold until maturity, I will get the 4.966%, right?

@PTCkknagarTRICHY

11 ай бұрын

Yeah. But the returns are comparative values. For example, you might get better returns than this with some other bond after one year. At that time, this 4.966% will not be a good return.

❤👍🏿

Isn’t this formula for approximate YTM ?

You're already going wrong at 20 seconds in. Consider the following facts, (A) and (B). (A) At 00:17, you say it pays "semi-annually", that means "two payments per year". (B) Five seconds later you're saying "You're going to receive 5% payment each year, so it means in the first year you receive 50 dollars". (A) and (B) together are at the very least ambiguous (it's not clear what is meant), and possibly contradictory. Try to be clear in your explanations, and avoid confusion.

@jonathan2x660

Жыл бұрын

If the compounding period or pay period isn't stated it is always paid semi annually 1000 x 5% is 50 , 2 pays of 25

So why would I buy a bond at a premium price?

@andypayne2743

2 жыл бұрын

I guess it would depend on the current bank interest rate/rate of inflation. If the interest rate in a savings account is running at 1% but a bond had a YTM of 3% you would be taking on more risk but get a higher return. Plus you have the potential of selling the bond on the secondary market and potentially making a profit if you did not hold to maturity.

still confused. Why we divide numerator by 2?

@sedonaa

2 жыл бұрын

he did semi-annual payments

@natashalulu9400

Жыл бұрын

If you are talking about the APPROXIMATION, formula, he actually divided the bottom part, which is called the denominator rather than the numberator as you stated) , by 2 in the approximation formula. The reason he did this was that it was an APPROXIMATION formula, and he is just taking the AVERAGE of 2 TWO things, the face value of the bond and the Price you paid for the bond. ( ( FACE value plus PRICE you actually paid) divided by 2) is sort of an approximated, or estimated amount). I hope this helps.

How did you get 5 % profit

@rodneymwakota1904

9 ай бұрын

250÷1250)×100%=20%

Just in 2 years, bonds being sold in price less than face value is a norm lol

@MrsGG-id1os

4 ай бұрын

Nice to know

bil

Screw Christ. I'm just kidding.

This video is so bad it only tells you how to calculate it without telling any definition or relationship. He didn't even tell us what's YTM. With this kind of teaching I may as well just plug everything in the formula and save 12 minutes

this is wrong

NOT HELPFUL