What does that mean when a bond has a negative YTM?

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What does that mean when a bond has a negative YTM?

2007-03-01 14:03:22 · 4 answers · asked by CK 1 in Business & Finance ➔ Investing

4 answers

I think it means that the bond is trading so far ABOVE par value, that when mature, the loss of principal will be greater than the money you will get from the interest, therefore no or negative yield to maturity.

2007-03-01 14:35:44 · answer #1 · answered by gosh137 6 · 0⤊ 0⤋

If you mean the Yield to Maturity (YTM) it means is the bond is trading below Par Value.

2007-03-01 14:14:54 · answer #2 · answered by ? 5 · 0⤊ 0⤋

What Does Ytm Mean

2017-02-25 04:03:03 · answer #3 · answered by Anonymous · 0⤊ 0⤋

CJ,

Gosh137 is exactly correct. I have no idea what the other person is talking about and obviously they don't either.

Good Luck,
Dana B.

2007-03-01 14:39:50 · answer #4 · answered by planningresult 4 · 0⤊ 0⤋