What is the revenue from the Ministry of Finance?
The revenue of the Ministry of Finance bonds is the revenue of the maturity of the bond issued by the United States Ministry. The income of the maturity of the bond is the assumed interest rate, according to which the promised cash flows from the bond are cheaper. The revenue of the Ministry of Finance bonds is interesting for investors because it provides a clearer image of expectations than revenues to maturity of corporate bonds. While the values of all corporate bonds include a certain level of failure, the treasury is expected to be 100 % credible.
Bond is a debt tool. The issuing entity receives the price that the investor pays for the bond; In exchange, he promises to pay a certain amount at the date of maturity of the bond. The bond contract sometimes also stipulates that the issuer will apply periodic coupons that are in principle payments of debt interest. Treasury publishes a number of securities. The bonds of the Ministry of Finance are securities that mature 30 years after the date of release and pay coupons every six months.
DL yield proceedsThe Uhopis of the Ministry of Finance is calculated in the same way as the return for any link is calculated. The formula is given by the price = C/(1 + Y) + C/(1 + Y)
2 +… + C/(1 + Y) The price is the market price of the bond. C is a coupon of a bond or payment that the investor receives every period. A new value or nominal value is the final payment of a bond, which is usually $ 1,000 USD (USD), and t is the number of remaining periods until the bond disappears.
In the above -mentioned Y formula, the yield is to maturity. Other components of the formula are known quantities. Once they are filled, the yield to maturity can be found using a guess and control method: you guess what yield can be, compare the expected price of the formula with the actual price, adjust the yield up or down as needed and try again. This method is time consuming, so most investors use financial calculators to find bond yields. These calculators also useMethod of estimation and control, but quickly iterates attempts to provide an accurate answer.
Treasury bonds are stable, reliable notes, so they are used as a scale in financial facts discussions. Investors often refer to the Bond cash register curve, a chart of revenue for the due date of cash bonds with different maturation data. The shape of this graph illustrates the expectations of future interest rates that predominate on the market.