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Be sure to check out the hobbyist sections of our site. We're in the process of rolling out sections on photography and everyday gadgets. We don't focus on the cutting edge, new technologies -- we're focusing on how to use new technologies in everyday life.
Gadgets
every day uses for new and old technologies.
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Bond Yield to Maturity
If a bond holder decides to hold onto a bond they have purchased, they will typically want to know what the return on the investment will be over the entire life of the investment. The Current Yield indicates to the investor the return on the investment in the current period, based on the interest earned. The Yield to Maturity indicates the total return, including both interest earned and any change in the price over the holding period of the bond.
The Yield to Maturity calculates a series of present values. Each interest payment is discounted to today, as well as the future return of the face of the bond. For comparison purposes, the current yield is greater than the yield to maturity if the current price of the bond is greater than its face amount. If the face amount of the bond is greater than the current price, then the yield to maturity is greater than the current yield. The reason for this is quite simple, if the face value of a bond is $1,000 and the current price is $1,100, then you will be receiving LESS at the maturity of the bond than you would be paying right now, thus YIELDING less.
For those of you who want to know formulas:
YTM = sum of all discounted cash flows calculated as:
curr amt = Cash Flow / (1 + Interest)^time
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If you're looking for information on the the FinPlan Divorce Planner (from the other FinPlan company), please continue on to http://www.divorceplanner.com.
Note - FinPlan.com does not offer any information regarding this program nor does it have any relationship with the company offering the software. This link is provided as a service only.
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FinPlan.com offers several online tools and calculators as well as some software programs from FinPlan, Inc. FinPlan started developing software in the 1980s developing 10 programs covering several personal finance topics.
Family Retirement Planner
The FinPlan Family Retirement Planner provides an excellent high-level retirement planning model to help you determine your retirement planning needs which will allow you to develop a strategy to get there.
Financial Toolkit
The FinPlan Financial Toolkit provides a variety of financial tools designed to help you answer many questions on personal finance.
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