Debt Flashcards
1
Q
Current Yield
Bond
A
Annual Income (in dollars) / Current Market Price
2
Q
Current Market Price
Bond
A
Annual Income (in dollars) / Yield
3
Q
Nominal Yield
A
State Rate of Interest
4
Q
Yield to Maturity
A
(Annual Income + Annual again OR - Annual Loss) / ((Purchase Price + Redemption Price)/2)
5
Q
Summary of Yields
If a bond trades at a discount…
A
YTC>YTM>CY>Coupon/Nominal
6
Q
Summary of Yields
If a bond trades at a premium…
A
YTC
7
Q
Conversion Ratio
A
Par Value of Bond / Conversion Price
8
Q
Parity Price of Bond
A
Conversion Ratio X Stock’s Market Price
9
Q
Parity Price of Stock
A
Bond Market Value / Conversion Ratio
10
Q
Mill Rate
A
One Mill= .001
-Ad valorem taxes are based on a municipalities millage. (1$ taxed on every $1000 assessed value)
