ChatterBank2 mins ago
Corporate Bond Prices
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When buying Bonds is YTM (Yield to maturity) the same as GRY (Gross Redeemable Yield.
grateful for any help.
trevbet
grateful for any help.
trevbet
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In the first instance, there is no such thing as Gross Redeemable Yield (so say Google) - you must mean Gross Redemption Yield.
Having sorted that little confusion out, the answer is that they are not the same - but they are related.
YTM is a average annual percentage return on the Bond from the date of purchase until the date of maturity. It is thus obviously expressed in ' % pa '
GRY is the total returned from the investment in the Bond - including both investment return over the term and capital returned on Bond maturity. It is thus expressed in '£' (or $, or indeed any other dealing currency).
Having sorted that little confusion out, the answer is that they are not the same - but they are related.
YTM is a average annual percentage return on the Bond from the date of purchase until the date of maturity. It is thus obviously expressed in ' % pa '
GRY is the total returned from the investment in the Bond - including both investment return over the term and capital returned on Bond maturity. It is thus expressed in '£' (or $, or indeed any other dealing currency).
Only 1 answer
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