Archive of Journal - Financing

Financing – scientific magazine for economy

ISSUE 2020, No. 2, Article 5, Year of publication: 11, June, 2020

Yield analysis of investments in bonds in the capital market of the Republic of Srpska

AUTHORS

Mladen Gajić*, Vladimir Stanimirović**, Dragan Janjić***
*MBA, Hospital in Doboj,  **MBA, VS Consulting ***MBA, City heating plant Banja Luka

ABSTRACT

ARTICLE INFO

Bond markets used to be an extremely quiet area for risk-averse investors who want safe investments with modest but safe returns. However, today these markets are not so quiet areas for investors. This is supported by the fact that the annual volume of trading in gov-ernment bonds in the United States is more than ten times higher than the total amount of government debt.More active bond trading in capital markets is not the only reason why the analysis of bond investment returns has become more interest-ing for investors, but also the fact that these markets are no longer completely risk-free. After the global economic and financial crisis in 2008, the yield volatility when investing in bonds is extremely high, which means that investors have a great chance to make a profit, but also a loss. The yield volatility when investing in bonds is much greater today than one might have imagined in 1965.Therefore, for the purpose of a comprehensive elaboration, we have done a yield analysis when investing in bonds in the capital market of Republic of Srpska. Accordingly, we are confident that the claims, facts and evidence presented in this paper will be of benefit to students, academic researchers, theorists, and investors in the Republic of Srpska.

Keywords: government bonds, current yield, yield to maturity and capital market

DOI: 10.7251/FIN2001055G

Corresponding author:
mladengajic@gmail.com