Research: Yields of Bonds and Strips

The May edition of Canadian Moneysaver contained my review of bond and strip yield calculations. The interplay between the two create some relationships of which every investor should be aware … and most aren’t.

Look for the research link!

Update, 2012-1-18: Assiduous Reader HK points out that in the section “Accrued Interest Calculation Conventions”, my explanation of accrued interest calculations is precisely reversed: in fact, according to the IIAC Conventions, Settlement is calculated according to Actual / 365 and Yield is calculated using Actual / Actual. Oops!

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