https://v2.webnotes.in/tags/yield/Recent content in Yield on WebNotesHugoen-INWed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/calculate-gsec-returns/Wed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/calculate-gsec-returns/<p><strong>G-Sec returns</strong> depend on coupon, purchase price, and holding period. Key measures:</p> <h2 id="1-current-yield">1. Current yield</h2> <pre tabindex="0"><code>Current yield = (Annual coupon / Current price) x 100 </code></pre><p>Example: G-Sec with 7% coupon, current price Rs 102:</p> <pre tabindex="0"><code>Current yield = (7 / 102) x 100 = 6.86% </code></pre><h2 id="2-yield-to-maturity-ytm">2. Yield to maturity (YTM)</h2> <p>The most-used measure. Accounts for coupon + price gain/loss to maturity:</p> <pre tabindex="0"><code>YTM = solve for r: Price = sum(Coupon / (1+r)^t) + FaceValue / (1+r)^T </code></pre><p>Computed numerically; most platforms / spreadsheets give YTM directly.</p>https://v2.webnotes.in/indicative-yield-gsecs/Wed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/indicative-yield-gsecs/<p><strong>Indicative yield</strong> is the estimated yield-to-maturity that Zerodha displays for each G-Sec / T-Bill / SDL in the Bids window before the RBI auction.</p> <table> <thead> <tr> <th>Term</th> <th>Meaning</th> </tr> </thead> <tbody> <tr> <td>Indicative yield</td> <td>Estimated YTM based on prior auctions and current market</td> </tr> <tr> <td>Cut-off yield</td> <td>Actual yield determined by RBI auction (binding)</td> </tr> </tbody> </table> <h2 id="how-they-differ">How they differ</h2> <ul> <li><strong>Indicative</strong>: A forecast, displayed pre-auction so investors can plan.</li> <li><strong>Cut-off</strong>: Actual yield set when RBI completes the auction; what you receive.</li> </ul> <p>Typically the cut-off is close to the indicative (within 5-10 bps), but volatile rate environments can see larger gaps.</p>