Bond Yield Measures and Calculations

In this section

• Yield to Maturity (YTM)
  Understand yield to maturity as the internal rate of return implied by a bond’s current price and cash flows.
• Yield to Call and Yield to Put
  Compare call and put yield measures when embedded options can change a bond’s expected life.
• Effective Yield and Bond Equivalent Yield
  Learn how compounding conventions change quoted yields and how bond equivalent yield standardizes comparison.