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For all you finance buffs: How are bond yield rates determined?

imthebadguy

Platinum Member
HOw are bond yield rates determined by the issuer if the bond, i dont mean the mathamatical formula but how are rates themselves determined?
 
it depends on a lot of factors:

- the credit rating of the issuer
- if the bond is a plain vanilla bond, or if it has features such as calls, convertible bonds, etc (these are called bond indentures)
- the maturity of the bond (how long till the bond matures)
- some bonds have a floating or adjustable rate (rather than a fixed rate)

 
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