#bonds #finance #yield-to-maturity
yield to maturity is the rate of return that makes the
present value (PV) of the cash flow generated by the bond equal to the price.
If you want to change selection, open document below and click on "Move attachment"
Yield to Maturitye rate at which coupon payments can be reinvested at is unknown. However, for zero coupon bonds, the yield to maturity and the rate of return are equivalent since there are no coupon payments to reinvest.
Another way of putting it is that the <span>yield to maturity is the rate of return that makes the present value (PV) of the cash flow generated by the bond equal to the price. Yield to maturity is widely used by investors as a way to compare bonds with different face values, coupon payments, and time till maturity.
Yield to Maturity Terminology
Face Value, a Summary
| status | not read | | reprioritisations | |
|---|
| last reprioritisation on | | | suggested re-reading day | |
|---|
| started reading on | | | finished reading on | |
|---|
Details