Why some bonds have negative yield to maturity?

Question

I'm so confused

In the Yahoo bond screener, why some bonds have negative yield to maturity?

That means you are sure to lose your money?

tnx

Answer 1

Read the following passage from the source I cited below:

" Let's consider an example: say an investor pays $800 for a bond that has has exactly two years to maturity, a face value of $1,000 and interest payments of $8 per year. Using a bond table, we could determine that the bond will have a YTM of about 10.86%.

If the bond holder paid $1,200 for the bond, the YTM would be about -9.41% [minus 9.41%] (It is worth noting, however, that a bond will not necessarily have a negative actual yield just because the investor paid more than face value for it.) When using the YTM calculation, it is possible to have a negative yield on a bond - it depends largely on how much you initially pay for the bond and the time to maturity."