5
votes
Pricing a bond denominated in USD but issued in Europe
If this German company already has other similar debts denominated in USD, and you are able to observe the yields at which they trade, then you can just interpolate their yields to the maturity of ...
- 10.8k
4
votes
Accepted
Strange Market Data YTM for a Zero Coupon Bond
This bond has a slightly different calculation logic to your average zero coupon bond. Denote $t$ the trade date, $t_0$ the issue date, $T$ the maturity date and $P$ the traded price.
You'll first ...
- 1,230
3
votes
Pricing a bond denominated in USD but issued in Europe
You should use the US Treasury yields but this is probably not the only thing you should take into account in pricing that bond.
I don't know if the bond you are trying to price would strictly qualify ...
- 868
2
votes
Pricing a bond denominated in USD but issued in Europe
I would say price the bonds using USD yield curve. Many of these USD debt bonds (Sovereign and EM) trade as a spread to UST benchmark bonds.
- 5,517
2
votes
Accepted
Is High Treasury yield a bullish signal to stock market?
Yields down = Bond prices up: usually, Bonds are considered a safe-heaven asset, so a bid in bonds signals flight to safety: so when yields drop sharply without any specific central bank action, it's ...
- 5,513
1
vote
Accepted
US Treasury: Calculating Price from Yield
There is something wrong with that screenshot. The price that corresponds to a 4.475 yield should be 99-26 which is close to the value you calculated. Mentally you can check this because the yield is ...
- 15.2k
1
vote
What is the difference between Discount Yield and Yield on US Treasury Bills
The two fields in HP are not YAS_BOND_YLD vs YLD_YTM_BID.
If you right click on the data point, you can select ...
- 6,329
1
vote
How to interpret YTM of FRN when interest rates change?
While this sounds like a basic question, it does bring up a few nuances that are worth discussing.
First, suppose you have a fixed-coupon bond, rather than FRN. When risk-free rates go up, the coupons ...
- 10.8k
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