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Showing posts from September, 2022

bonds

  maturity = no. of years remaining for the maturity coupon = interest paid every year (or 6 months) until maturity frequency = interest paid, denoted by m =                      semi annual means 2                     annual means 1 yield to maturity = % bond value = present value of coupon + present value of principal                     = coupon * [PV ytm, t] + principal * [PV ytm, t]                         coupon * (1- 1/(1+r)t /r) if yield goes down, price will go up

interest rates

interest rates  - central bankers' role impact to common citizens.