IBM Corporation how would you compare the yield to the marke

IBM Corporation... how would you compare the yield to the market?

Solution

IBM has different type of bond with varying frequencies of coupon payments and Different Maturity dates; the number of days in the year may also differ. Because fixed-income investments use a variety of yield conventions, it is important to convert the yield to a common basis when comparing different bonds. Taken separately, these conversions are straightforward; however, when a problem contains both compounding period and day count conversions, the correct solution technique is not so obvious. In this article, we\'ll take a look at a couple of the common problems investors run into when calculating these yields and show you how to work them out.