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MegaMeallionear   claims that  When the price changes (RV happens), so does the yield (reflects the RV factor). DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

MegaMeallionear claims that When the price changes (RV happens), so does the yield (reflects the RV factor).

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MegaMeallionear   claims that  When the price changes (RV happens), so does the yield (reflects the RV factor). Empty MegaMeallionear claims that When the price changes (RV happens), so does the yield (reflects the RV factor).

Post by Ponee on Tue Jul 28, 2015 11:52 am


When the price changes (RV happens), so does the yield (reflects the RV factor).

Let's demonstrate this with an example. If you buy a bond with a 10% coupon at its $1,000 par value, the yield is 10% ($100/$1,000). Pretty simple stuff.

But if the price goes down to $800, then the yield goes up to 12.5%. This happens because you are getting the same guaranteed $100 on an asset that is worth $800 ($100/$800)

. Conversely, if the bond goes up in price to $1,200, the yield shrinks to 8.33% ($100/$1,200).

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MegaMeallionear   claims that  When the price changes (RV happens), so does the yield (reflects the RV factor). Empty Re: MegaMeallionear claims that When the price changes (RV happens), so does the yield (reflects the RV factor).

Post by Kevind53 on Tue Jul 28, 2015 12:30 pm

And your point?

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 MegaMeallionear   claims that  When the price changes (RV happens), so does the yield (reflects the RV factor). 2805820865  MegaMeallionear   claims that  When the price changes (RV happens), so does the yield (reflects the RV factor). 2805820865  MegaMeallionear   claims that  When the price changes (RV happens), so does the yield (reflects the RV factor). 2805820865  MegaMeallionear   claims that  When the price changes (RV happens), so does the yield (reflects the RV factor). 2805820865
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