annualYtmZcbForPeriodicity {bondAnalyst} | R Documentation |

Calculates annual Yield-To-Maturity (YTM) of Zero-Coupon Bond with given Price and given Maturity Value for various values of Periodicity.

```
annualYtmZcbForPeriodicity(
maturityVal,
yearsToMaturity,
ZCBprice,
desiredPeriodicity
)
```

`maturityVal` |
A number. |

`yearsToMaturity` |
A number. |

`ZCBprice` |
A number. |

`desiredPeriodicity` |
A number. |

The periodicity of the annual market discount rate for a zero-coupon bond is arbitrary because there are no coupon payments. As in the given examples, for semi-annual compounding, the annual yield-to-maturity on the five-year, zero-coupon bond priced at 80 percent 100 of par value is stated to be 4.5130 percent. This annual rate has a periodicity of two. For quarterly compounding, the annual yield-to-maturity is stated to be 4.4880 percent. This annual rate has a periodicity of four. For monthly compounding, the annual yield-to-maturity is stated to be 4.4712 percent. This annual rate has a periodicity of 12. For annual compounding, the yield-to-maturity is stated to be 4.5640 percent. This annual rate has a periodicity of one (Adams & Smith, 2019).
With regard to the given information ,`annualYtmZcbForPeriodicity()`

is developed to compute annual Yield-To-Maturity (YTM) of Zero-Coupon Bond with given Price and given Maturity Value for different values of Periodicity for values passed to its four arguments. Here, `maturityVal`

is Maturity Value of the Bond, `yearsToMaturity`

represents years to maturity, `ZCBprice`

represents price of Zero-Coupon Bond, and `desiredPeriodicity`

desired periodicity for which the YTM is to be computed. The output is rounded off to six decimal places.

Input values to four arguments `maturityVal`

, `yearsToMaturity`

,`ZCBprice`

and `desiredPeriodicity`

.

MaheshP Kumar, maheshparamjitkumar@gmail.com

Adams,J.F. & Smith,D.J.(2019). Introduction to fixed-income valuation. In CFA Program Curriculum 2020 Level I Volumes 1-6. (Vol. 5, pp. 107-151). Wiley Professional Development (P&T). ISBN 9781119593577, https://bookshelf.vitalsource.com/books/9781119593577

```
annualYtmZcbForPeriodicity(maturityVal=100,yearsToMaturity=5,ZCBprice=80,desiredPeriodicity=2)
annualYtmZcbForPeriodicity(maturityVal=100,yearsToMaturity=5,ZCBprice=80,desiredPeriodicity=4)
annualYtmZcbForPeriodicity(maturityVal=100,yearsToMaturity=5,ZCBprice=80,desiredPeriodicity=12)
annualYtmZcbForPeriodicity(maturityVal=100,yearsToMaturity=5,ZCBprice=80,desiredPeriodicity=1)
```

[Package *bondAnalyst* version 1.0.1 Index]