bonds and yeilds Flashcards
1
Q
current yeild of 30 year gov bond jan 2025
A
5.22%
2
Q
definition of a bond
A
a debt security where an investor lends money to a government or corporation excahnge for fixed interest payments and the return of the bonds face value at maturity
3
Q
government bond def
A
a bond issued by a government to finance its spending and obligations, often considered a low risk investment
4
Q
difference between treasury- bill, note, bond
A
bill- ST bond, maturities less than 1 year
note- medium term 2-10 years
bond- LT 10 years or more
5
Q
coupon payment def
A
regular interest payment made to bondholders % of bonds valur
6
Q
bond price def
A
market price of a bond which fluctuates based on IR and other factors
7
Q
formula of current yield of a bond
A
anual coupon payment / current market price X100
