Decoding-Debt-Funds-July-10-2019
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Know The Basics
What is yield?
Annualized rate of return from a debt instrument
Yield
Current Yield
Yield To Maturity (YTM)
Single year return earned on the
price paid for a bond
Total returns if a bond is held
until maturity
Components
• Coupon
• Price
Components
• Coupon
• Price
• Maturity amount
• Time to maturity
YTM is more accurate than Current Yield
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