Top Rated Pune Call Girls Sinhagad Road ⟟ 6297143586 ⟟ Call Me For Genuine S...
Wk 9 session 24 26 slides 1-3 the yield or investment rate
1. F0069
* Property of STI
Page 1 of 3
The Yield or Investment Rate
THE YIELD OR
INVESTMENT RATE
Approximation
Yield or Investment Rate - is the true and
overall rate of return that an investor receives
on the invested capital
Find the coupon payment
Cp = FV x b
Step 1:
Step 2: Find the redemption value
RV = FV x Rr
2. F0069
* Property of STI
Page 2 of 3
The Yield or Investment Rate
Approximation
Find the book value
BV = FV x MQ
Step 3:
Step 4: Find the total benefits
Tb = RV + Cp x n
Step 5:
Step 6:
Find net benefits
Find the average benefit
Ab = Nb/n
Nb = Tb - BV
3. F0069
* Property of STI
Page 3 of 3
The Yield or Investment Rate
Approximation
Find the average invested principal
AIP = (BV + RV)/2
Step 7:
Step 8: Find the Yield Rate
Yr = (Ab/AIP) x m
