I hate knowing im missing something but the step by step instructions you give tells me ppl like you are missing from the world and we need more people like you thank you.
i was stuck on a problem for hours and couldn't get the right answer. 5 minutes into your video and I solved it. what an absolute legend. you earned a new subscriber!!
Sure. If you continue watching this video, at about 6:22 I start walking you through another example in which the coupon payments are semi-annual. With MONTHLY coupon payments, change "Coupons Per Year" to 12 and "Number of Time Periods" to "Time to Matuity x 12". Face Value remains the same = $1,000. Hope this helps.
Good question! Dirty price reflects accrued interest, so it more accurately represents what the investor is going to get. Thus, you should use dirty price and not the clean price when calculating YTM.
That’s unusual. But take the coupon rate, divide my 12 to get the monthly coupon rate, and then multiply that by Face Value to get the monthly coupon payment.
I am sorry but the semi annual coupon example is wrong, we should assume continuously compounding and therefore we should not multiply by 2 but do (1+ semi-annual rate)^2 - 1
May be because the coupons are cumulative and interest is compounding on the unpaid coupons too. But if they are paid when accrued then no need for compounding.
I hate knowing im missing something but the step by step instructions you give tells me ppl like you are missing from the world and we need more people like you thank you.
i was stuck on a problem for hours and couldn't get the right answer. 5 minutes into your video and I solved it. what an absolute legend. you earned a new subscriber!!
Same!!!!😢😊and I tried everything!!
Terrific explation. You deserve a teaching award
🙂 That’s very kind of you! Thank you.
Incredible video. Theory and practical application. Love it. Thank you!
You are an angel! Many thanks! Best video on youtube on bonds!
This is great, God bless you!!
Great Work Sir
Amazing! Couldn't find my final yield anywhere on Vanguard after buying a 30yr US T-bond at auction...only saw the indicative yield when entering bid.
can you help with monthly coupon payments how to solve ytm in excel
Sure. If you continue watching this video, at about 6:22 I start walking you through another example in which the coupon payments are semi-annual. With MONTHLY coupon payments, change "Coupons Per Year" to 12 and "Number of Time Periods" to "Time to Matuity x 12". Face Value remains the same = $1,000.
Hope this helps.
Thank you for this video 🙏
GOD BLESS YOU
Thank you !
You're welcome!
Hi! I wanted to know if im using information online for price of the bond do I consider the dirty price of it?
Good question! Dirty price reflects accrued interest, so it more accurately represents what the investor is going to get. Thus, you should use dirty price and not the clean price when calculating YTM.
YOU ARE AMAZING
Thank you so much! 🙂
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thanks for the video, any way you can share the template?
Mr. how to calculate if coupon payments pay monthly ?
That’s unusual. But take the coupon rate, divide my 12 to get the monthly coupon rate, and then multiply that by Face Value to get the monthly coupon payment.
Thank you very much Mr I have calculated using your method and it has been very useful. I will watch your all videos
thanks for the video, any way you can send me that template?
how to calculate monthly coupon freq. coupon payment in excel ?
Great!
I am sorry but the semi annual coupon example is wrong, we should assume continuously compounding and therefore we should not multiply by 2 but do (1+ semi-annual rate)^2 - 1
Thanks Vasco! Would you care to elaborate WHY continuous compounding should be used here, as opposed to semi-annual compounding?
May be because the coupons are cumulative and interest is compounding on the unpaid coupons too. But if they are paid when accrued then no need for compounding.