YHOO » Topics » Interest Rate Risk.

This excerpt taken from the YHOO 10-Q filed Nov 3, 2006.
Interest Rate Risk.   Our exposure to market rate risk for changes in interest rates relates primarily to our investment portfolio.  We invest excess cash in marketable debt instruments of the United States Government and its agencies, and in high-quality corporate issuers and, by policy, limit the amount of credit exposure to any one issuer.  We protect and preserve invested funds by limiting default, market and reinvestment risk.

Investments in both fixed rate and floating rate interest earning instruments carry a degree of interest rate risk.  Fixed rate securities may have their fair market value adversely impacted due to a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall.  Due in part to these factors, our future investment income may fall short of expectations due to changes in interest rates or we may suffer losses in principal if forced to sell securities which have declined in market value due to changes in interest rates.  As of September 30, 2006 and 2005, we had investments in short-term marketable debt securities of approximately $0.9 billion and $1.2 billion, respectively.  Such investments had a weighted-average yield of approximately 4.0 percent and 3.2 percent, respectively.  As of September 30, 2006 and 2005, we had investments in long-term marketable debt securities of approximately $1.1 billion and $1.6 billion, respectively.  Such investments had a weighted average yield of approximately 4.4 percent and 3.7 percent, respectively.  A hypothetical 100 basis point increase in interest rates would result in an approximate $18 million and $30 million decrease (approximately 1 percent), respectively, in the fair value of our available-for-sale debt securities as of September 30, 2006 and 2005.

The fair market value of the zero coupon senior convertible notes (the “Notes”) issued by Yahoo! and due in April 2008 is subject to interest rate risk and market risk due to the convertible feature of the Notes.  Generally, the fair market value of fixed interest rate debt will increase as interest rates fall and decrease as interest rates rise.  The fair market value of the Notes will also increase as the market price of the Yahoo! stock increases and decrease as the market price falls.  The interest and market value changes affect the fair market value of the Notes but do not impact our financial position, cash flows or results of operations.  As of September 30, 2006 and 2005, the fair value of the Notes was approximately $0.9 billion and $1.2 billion, respectively, based on quoted market prices.

This excerpt taken from the YHOO 10-Q filed Aug 4, 2006.
Interest Rate Risk.   Our exposure to market rate risk for changes in interest rates relates primarily to our investment portfolio.  We invest excess cash in marketable debt instruments of the United States Government and its agencies, and in high-quality corporate issuers and, by policy, limit the amount of credit exposure to any one issuer.  We protect and preserve invested funds by limiting default, market and reinvestment risk.

 

Investments in both fixed rate and floating rate interest earning instruments carry a degree of interest rate risk.  Fixed rate securities may have their fair market value adversely impacted due to a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall.  Due in part to these factors, our future investment income may fall short of expectations due to changes in interest rates or we may suffer losses in principal if forced to sell securities which have declined in market value due to changes in interest rates.  As of June 30, 2006 and 2005, we had investments in short-term marketable debt securities of approximately $1.1 billion and $1.5 billion, respectively.  Such investments had a weighted-average yield of approximately 3.8 percent and 2.9 percent, respectively.  As of June 30, 2006 and 2005, we had investments in long-term marketable debt securities of approximately $1.3 billion and $1.5 billion, respectively.  Such investments had a weighted average yield of approximately 4.3 percent and 3.5 percent, respectively.  A hypothetical 100 basis point increase in interest rates would result in an approximate $25 million and $29 million decrease (approximately 1 percent), respectively, in the fair value of our available-for-sale debt securities as of June 30, 2006 and 2005.

 

The fair market value of the zero coupon senior convertible notes (the “Notes”) is subject to interest rate risk and market risk due to the convertible feature of the Notes.  Generally, the fair market value of fixed interest rate debt will increase as interest rates fall and decrease as interest rates rise.  The fair market value of the Notes will also increase as the market price of the Yahoo! stock increases and decrease as the market price falls.  The interest and market value changes affect the fair market value of the Notes but do not impact our financial position, cash flows or results of operations.  As of June 30, 2006 and 2005, the fair value of the Notes was approximately $1.2 billion and $1.3 billion, respectively,  based on quoted market prices.

 

This excerpt taken from the YHOO 10-Q filed May 5, 2006.
Interest Rate Risk.   Our exposure to market rate risk for changes in interest rates relates primarily to our investment portfolio.  We invest excess cash in marketable debt instruments of the United States Government and its agencies, and in high-quality corporate issuers and, by policy, limit the amount of credit exposure to any one issuer.  We protect and preserve invested funds by limiting default, market and reinvestment risk.

 

Investments in both fixed rate and floating rate interest earning instruments carry a degree of interest rate risk.  Fixed rate securities may have their fair market value adversely impacted due to a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall.  Due in part to these factors, our future investment income may fall short of expectations due to changes in interest rates or we may suffer losses in principal if forced to sell securities which have declined in market value due to changes in interest rates.  As of March 31, 2006 and 2005, we had investments in debt securities with effective maturities between three months and one year of approximately $1.1 billion and $1.5 billion, respectively.  Such investments had a weighted-average yield of approximately 3.5 percent and 2.7 percent, respectively.  As of March 31, 2006 and 2005, we had investments in debt securities with effective maturities between one and five years of approximately $1.4 billion and $1.3 billion, respectively.  Such investments had a weighted average yield of approximately 4.0 percent and 3.3 percent, respectively.  A hypothetical 100 basis point increase in interest rates would result in an approximate $25 million and $29 million decrease (approximately 1 percent), respectively, in the fair value of our available-for-sale debt securities as of March 31, 2006 and 2005.

 

The fair market value of the zero coupon senior convertible notes (the “Notes”) is subject to interest rate risk and market risk due to the convertible feature of the Notes.  Generally, the fair market value of fixed interest rate debt will increase as interest rates all and decrease as interest rates rise.  The fair market value of the Notes will also increase as the market price of the Yahoo! stock increases and decrease as the market price falls.  The interest and market value changes affect the fair market value of the Notes but do not impact our financial position, cash flows or results of operations.  As of March 31, 2006 and 2005, the fair value of the Notes was approximately $1.2 billion and $1.3 billion based on quoted market prices.

 

This excerpt taken from the YHOO 10-K filed Mar 3, 2006.
Interest Rate Risk.   Our exposure to market rate risk for changes in interest rates relates primarily to our investment portfolio.  We invest excess cash in marketable debt instruments of the United States Government and its agencies, and in high-quality corporate issuers and, by policy, limit the amount of credit exposure to any one issuer.  We protect and preserve invested funds by limiting default, market and reinvestment risk.

Investments in both fixed rate and floating rate interest earning instruments carry a degree of interest rate risk.  Fixed rate securities may have their fair market value adversely impacted due to a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall.  Due in part to these factors, our future investment income may fall short of expectations due to changes in interest rates or we may suffer losses in principal if forced to sell securities which have declined in market value due to changes in interest rates.  As of December 31, 2005 and 2004, we had investments in debt securities with effective maturities between three months and one year of approximately $1.1 billion and $1.9 billion, respectively.  Such investments had a weighted-average yield of approximately 3.5 percent and 2.4 percent, respectively.  As of December 31, 2005 and 2004, we had investments in debt securities with effective maturities between one and five years of approximately $1.4 billion and $1.0 billion, respectively.  Such investments had a weighted average yield of approximately 3.8 percent and 3.0 percent, respectively.  A hypothetical 100 basis point increase in interest rates would result in an approximate $26 million and $25 million decrease (approximately 1 percent), respectively, in the fair value of our available-for-sale debt securities as of December 31, 2005 and 2004.

The fair market value of the zero coupon senior convertible notes (the “Notes”) is subject to interest rate risk and market risk due to the convertible feature of the Notes.  Generally, the fair market value of fixed interest rate debt will increase as interest rates fall and decrease as interest rates rise.  The fair market value of the Notes will also increase as the market price of the Yahoo! stock increases and decrease as the market price falls.  The interest and market value changes affect the fair market value of the Notes but do not impact our financial position, cash flows or results of operations.  As of December 31, 2005 and 2004, the fair value of the Notes was approximately $1.4 billion based on quoted market prices.

This excerpt taken from the YHOO 10-Q filed Nov 4, 2005.
Interest Rate Risk.  Our exposure to market rate risk for changes in interest rates relates primarily to our investment portfolio.  We invest excess cash in marketable debt instruments of the U.S. Government and its agencies, and in high-quality corporate issuers and, by policy, limit the amount of credit exposure to any one issuer.  We protect and preserve invested funds by limiting default, market and reinvestment risk.

 

Investments in both fixed rate and floating rate interest earning instruments carry a degree of interest rate risk.  Fixed rate securities may have their fair market value adversely impacted due to a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall.  Due in part to these factors, our future investment income may fall short of expectations due to changes in interest rates or we may suffer losses in principal if forced to sell securities which have declined in market value due to changes in interest rates.  As of September 30, 2005 and 2004, we had investments in debt securities with effective maturities between three months and one year of $1.2 billion and $1.5 billion, respectively.  Such investments had a weighted-average yield of approximately 3.20 percent and 2.06 percent, respectively.  As of September 30, 2005 and 2004, we had investments in debt securities with effective maturities between one and five years of $1.5 billion and $907 million respectively.  Such investments had a weighted average yield of approximately 3.68 percent and 2.76 percent, respectively.  A hypothetical 100 basis point increase in interest rates would result in an approximate $30 million and $24 million decrease, respectively, in the fair value of our available-for-sale debt securities as of September 30, 2005 and 2004.

 

The fair market value of the zero coupon senior convertible notes (the “Notes”) is subject to interest rate risk and market risk due to the convertible feature of the Notes.  Generally the fair market value of fixed interest rate debt will increase as interest rates fall and decrease as interest rates rise.  The fair market value of the Notes will also increase as the market price of the Yahoo! stock increases and decrease as the market price falls.  The interest and market value changes affect the fair market value of the Notes but do not impact our financial position, cash flows or results of operations.  As of September 30, 2005 and 2004, the fair value of the Notes was approximately $1.2 billion and $1.3 billion, respectively based on quoted market prices.

 

This excerpt taken from the YHOO 10-Q filed Aug 5, 2005.
Interest Rate Risk.  Our exposure to market rate risk for changes in interest rates relates primarily to our investment portfolio.  We invest excess cash in marketable debt instruments of the U.S. Government and its agencies, and in high-quality corporate issuers and, by policy, limit the amount of credit exposure to any one issuer.  We protect and preserve invested funds by limiting default, market and reinvestment risk.

 

Investments in both fixed rate and floating rate interest earning instruments carry a degree of interest rate risk.  Fixed rate securities may have their fair market value adversely impacted due to a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall.  Due in part to these factors, our future investment income may fall short of expectations due to changes in interest rates or we may suffer losses in principal if forced to sell securities which have declined in market value due to changes in interest rates.  As of June 30, 2005 and 2004, we had investments in debt securities with effective maturities between three months and one year of $1.5 billion and $1.0 billion, respectively.  Such investments had a weighted-average yield of approximately 2.92 percent and 2.04 percent, respectively.  As of June 30, 2005 and 2004, we had investments in debt securities with effective maturities between one and five years of $1.5 billion and $1.1 billion respectively.  Such investments had a weighted average yield of approximately 3.50 percent and 2.59 percent, respectively.  A hypothetical 100 basis point increase in interest rates would result in an approximate $29 million and $27 million decrease, respectively, in the fair value of our available-for-sale securities as of June 30, 2005 and 2004.

 

The fair market value of the zero coupon senior convertible notes (the “Notes”) is subject to interest rate risk and market risk due to the convertible feature of the Notes.  Generally the fair market value of fixed interest rate debt will increase as interest rates fall and decrease as interest rates rise.  The fair market value of the Notes will also increase as the market price of the Yahoo! stock increases and decrease as the market price falls.  The interest and market value changes affect the fair market value of the Notes but do not impact our financial position, cash flows or results of operations.  As of June 30, 2005 and 2004, the fair value of the Notes was approximately $1.3 billion and $1.4 billion, respectively based on quoted market prices.

 

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