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It is 100*(Amount at end of year / Amount at start of year - 1).

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John buys a 1000 bond that pays 6 annual interest at 75. What is John's annual yield?

To calculate John's annual yield, we first need to determine the annual interest payment he receives from the bond, which is 6% of $1,000, amounting to $60. Since he purchased the bond for $750, the annual yield can be calculated by dividing the annual interest payment by the purchase price: $60 / $750 = 0.08 or 8%. Thus, John's annual yield on the bond is 8%.


Which one of the following discount frequencies will yield the largest present value give a stated future value and annual percentage rate.?

daily


How do you find unknown yearly rate of interest?

-- Divide end-of-year amount by beginning-of-year amount. -- Subtract ' 1 ' from the result. -- Multiply the result by 100. -- Result is the annual percentage yield. (Not the same as annual percentage rate, if interest is compounded more often than annually.)


How to find the expected dividend yield?

To find the expected dividend yield, divide the expected annual dividends per share by the current market price per share. The formula is: Expected Dividend Yield = (Expected Annual Dividends / Current Market Price) × 100. This yield provides an indication of the income generated from an investment in relation to its price, helping investors assess the attractiveness of a stock. Additionally, keep in mind that expected dividends can be based on historical trends or company announcements.


How do you calculate a bond value that has a ten-year maturity a 12 percent coupon rate with annual payments and a 1000 par value?

You would need to know a Yield To Maturity to answer this question.

Related Questions

How do you calculate the annual percentage yield (APY) on a certificate of deposit (CD)?

To calculate the annual percentage yield (APY) on a certificate of deposit (CD), you can use the formula: APY (1 (interest rate/n))n - 1, where the interest rate is the annual interest rate and n is the number of compounding periods per year.


How do you calculate annual percentage yield?

To calculate annual percentage yield (APY), you need to consider the interest rate and the frequency of compounding. The formula is: APY (1 (interest rate / number of compounding periods)) number of compounding periods - 1. This formula takes into account how often the interest is compounded within a year to give a more accurate representation of the annual return on an investment.


How can one determine the annual percentage yield (APY) from the annual percentage rate (APR)?

To determine the annual percentage yield (APY) from the annual percentage rate (APR), you can use this formula: APY (1 (APR/n))n - 1, where n represents the number of compounding periods in a year. This formula takes into account the effect of compounding on the overall yield.


How to calculate the yield of a bond?

To calculate the yield of a bond, you need to divide the annual interest payment by the current market price of the bond. This will give you the yield as a percentage.


How can one find the annual yield of an investment?

To find the annual yield of an investment, you can calculate it by dividing the annual income generated by the investment by the initial amount invested, and then multiplying by 100 to get a percentage.


How do you calculate the yield on a rental property?

To calculate the yield on a rental property, you divide the annual rental income by the property's value and multiply by 100 to get a percentage. This percentage represents the return on investment from the rental property.


How can I calculate the current yield on a bond?

To calculate the current yield on a bond, divide the annual interest payment by the current market price of the bond, then multiply by 100 to get the percentage.


How to find the annual percentage yield?

To find the annual percentage yield, you can use the formula: APY (1 (nominal interest rate / number of compounding periods)) (number of compounding periods) - 1. This formula takes into account the compounding of interest over a year to give a more accurate representation of the yield.


How can I calculate the annual yield from a 7-day yield using a yield calculator?

To calculate the annual yield from a 7-day yield using a yield calculator, you can multiply the 7-day yield by 52 (the number of weeks in a year). This will give you an estimate of the annual yield.


How do you calculate income yield?

Income yield is calculated by taking the annual income generated by an investment (such as interest or dividends) and dividing it by the initial investment amount. The formula is: Income Yield = (Annual Income / Initial Investment) x 100%. This percentage represents the rate of return on the investment in terms of income.


How calculate the percantage yield in balanced chemical equation?

To calculate the percentage yield in a balanced chemical equation, you first need to determine the theoretical yield (the maximum amount of product that can be formed based on stoichiometry). Then, measure the actual yield produced in the lab experiment. Divide the actual yield by the theoretical yield, and then multiply by 100 to get the percentage yield. The formula is: (actual yield / theoretical yield) x 100%.


How do you calculate rental yield for a property?

To calculate rental yield for a property, you divide the annual rental income by the property's value and multiply by 100 to get a percentage. This helps you understand how much return you can expect from the property as an investment.