![]() ![]() This applies to investment products with risk rating of 2.īalanced - you're generally comfortable with achieving a moderate level of return potential on your investment coupled with a moderate level of risk of investment loss.Ĭapital values of products can fluctuate and may fall below your original investment. In normal market conditions fluctuation is expected to be low, although this is not guaranteed, and you are comfortable with this level of fluctuation. Low - you're generally comfortable with achieving a low level of return potential on your investment coupled with a low level of risk of investment loss.Ĭapital values of products that are potentially suitable for you can fluctuate and may fall below your original investment. This applies to investment products with risk rating of 1. Very Low - you're generally comfortable with achieving a very low level of return potential on your investment coupled with a very low level of risk of investment loss.Ĭapital values of products that are potentially suitable for you can fluctuate and may fall below your original investment. Three market conditions are displayed on the graph are 'Poor', 'Intermediate' and 'Good.' ‘Poor' is the 5th percentile, 'Intermediate' is the 50th percentile and 'Good' is the 95th percentile. Whereas less risky investments usually offer more stability and a lower return. Investments with greater risk usually have a higher potential for gains or losses. The effect of any commissions, fees and charges would be to reduce the overall return you see on any investment. The initial results are based on an assumed growth rate associated with the risk level you've chosen and don't include the impact of any fees or taxes. This may indicate a potentially negative return and in a worst case scenario, it’s possible to lose the entire investment. There's also a chance that the investments may underperform in the 'poor market conditions' represented in this illustration. It's important to understand that the figures shown are indicative only and aren't guaranteed as the maximum and minimum amounts that your investment could achieve. The projected future performance of your investment shown in this illustration isn't a guarantee of the actual performance. You can find more information (including an estimated formula to calculate YTM) on the yield to maturity calculator page.We’ve used information you’ve provided, combined with assumptions made by HSBC, to illustrate whether funds you are prepared to invest are enough to achieve your financial goals. However, YTM is not current yield – yield to maturity is the discount rate which would set all bond cash flows to the current price of the bond. It's expressed in an annual percentage, just like the current yield. Yield to MaturityĪ bond's yield to maturity is the annual percentage gain you'll make on a bond if you hold it until maturity (assuming it doesn't miss payments). That is, you sum up all coupon payments over one year and divide by what a bond is paying today. The current yield of a bond is the annual payout of a bond divided by its current trading price. Yield to Maturity (%): The converged solution for yield to maturity of the bond (its IRR).Current Yield (%): The simple yield of the bond computed from the trading price and the coupon payments.Coupon Payment Frequency - How often the interest is paid out on the bond.Annual Coupon Rate - The interest rate paid on the bond.(You can enter decimals to represent months and days.) Years to Maturity - The numbers of years until bond maturity.Bond Face Value/Par Value ($) - The par value or face value of the bond.Current Bond Trading Price ($) - The price the bond is trading at today.3 Other Financial Basics and Bond Calculators Current Yield to Maturity Calculator Inputs
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