It must be (200/10500)*100 which is 1.90. If we calculate as you said: (0.02/10500)*100 , then it is 0.00190. Coupon amount helps to know the current yield.
Does the same apply to T bills? I.e., would a 4 week non-coupon t bill at a 4% maturity to yield rate recoup that 4% interest + the principal at maturity, or would it only recoup the difference between the par and the purchase price?
A zero-coupon bond doesn't pay any interest, so the YTM purely comes from getting the full face amount (after buying it initially at a discount) when the bond matures! (in your example, the T-bill)
Very clear. I'm puzzled by the price. Say I'm buying a t-bill for $1000 and it's got a YTM of 5%. But the price is something like 99.668. Paying $99 for a $1000 t-bill would be a huge yield so that's not what's going on. From watching your video, it sounds like that price means 99.668 cents on the dollar. Right?
Wow, so beautifully explained. The straight scoop. Well done. Great voice.
Finally -- A clear and concise explanation. Thank you
It must be (200/10500)*100 which is 1.90. If we calculate as you said: (0.02/10500)*100 , then it is 0.00190. Coupon amount helps to know the current yield.
what is the 200 for? what does represent? isn't it supposed to be 0,02?
@@luneelferdaous6015 2% out of 10 000$ = 200$
Thank you for clarifying!
Thank you! Very clear explanation of these confusing concepts ;)
You cleared out the confusion, thank you
Now I'm ready to buy my 1st T Bond.
Excellent Video !!!
Very clear explanation. Thank u
Thanks. Simple and clear.
she needs to replace my finance teacher asap
Does the same apply to T bills? I.e., would a 4 week non-coupon t bill at a 4% maturity to yield rate recoup that 4% interest + the principal at maturity, or would it only recoup the difference between the par and the purchase price?
A zero-coupon bond doesn't pay any interest, so the YTM purely comes from getting the full face amount (after buying it initially at a discount) when the bond matures! (in your example, the T-bill)
Good explanation
Very clear. I'm puzzled by the price. Say I'm buying a t-bill for $1000 and it's got a YTM of 5%. But the price is something like 99.668. Paying $99 for a $1000 t-bill would be a huge yield so that's not what's going on. From watching your video, it sounds like that price means 99.668 cents on the dollar. Right?
That's correct Chip!
@@howerusling165 Thanks!
Thank you so much
Really helpful, thanks!
Thank you
thank you!
thank
AMAZING
beautiful
HART-/C-MarfKieTY //nd.D
HART-/C-MarfKieTY //nd.D
HART-/C-MarfKieTY //nd.D
HART-/C-MarfKieTY //nd.D