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Does the yield to maturity represent the promised or expected return on the bonds?
The yield to maturity represents the promised yield on a bond
What else can I help you with?
Does the yield to maturity represent the promised or expected return on the bond?
The yield to maturity represents the promised yield on a bond
Why is yield to maturity the promised yield?
Yield to maturity (YTM) is considered the promised yield because it represents the total return an investor can expect to earn if a bond is held until maturity, assuming all coupon payments are made as scheduled and the bond is redeemed at par value. It accounts for the bond's current market price, coupon payments, and the time remaining until maturity, effectively reflecting the bond's expected cash flows. This makes YTM a critical measure for investors in assessing the potential profitability of fixed-income investments.
How is the IRR on a project related to the YTM on a bond?
The IRR on a project is calculated in the same way the YTM on a bond is. Both methods discount the future cash flows of the investment back to the present value and compare them with the appropriate amount; in the case of a bond, it is its current market price while in the case of the IRR method it is zero. The internal rate of return and the yield to maturity are the discount rates that make the present value of expected cash flows equal to the left side of the equation.
What god promised the Aztecs he would return?
Quetzalcoatl promised to return and take his throne
What factors affect the rate of return of an investment at maturity?
What factors affect the rate of return of an investment at maturity?
When was Return to the Promised Land created?
Return to the Promised Land was created on 2000-11-21.
General MacArthur promised he would return and free?
General MacArthur had promised that he would return and free the Philippines.
Do bonds represent ownership in a company?
No, bonds do not represent ownership in a company. Instead, they are a form of debt where investors lend money to a company or government in exchange for regular interest payments and the return of the principal amount at a specified maturity date.
What is a yield to maturity?
A yield to maturity is the internal rate of return on a bond held to maturity, assuming scheduled payment of principal and interest.
Why Did Jews return to Judah?
it was there promised land
How is expected rate of return calculated from average rate of return on investment and standard deviation?
The expected rate of return is simply the average rate of return. The standard deviation does not directly affect the expected rate of return, only the reliability of that estimate.
Does the capital asset pricing model help us to get required rate of return or expected rate of return?
expected rate of return
