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Finance Formulas / July 13, 2018 / Rory Wise

You can use the bond yield formula to determine the return you’ll realize by holding a bond to maturity. The required yield, conversely, is the return a bond must offer to make it worthwhile to investors, and it’s usually the same yield offered by other plain vanilla bonds in the market with similar credit quality and maturity. Once you’ve decided on the required yield, you can figure out the yield.

Down payment (or downpayment, also called a deposit in British English), is a payment used in the context of the purchase of expensive items such as a car and a house, whereby the payment is the initial upfront portion of the total amount due and it is usually given in cash at the time of finalizing the transaction. A loan or the amount in cash is then required to make the full payment.

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