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Busıness Fınance I
BUSINESS FINANCE I Dersi Valuation of Bonds and Stocks soru cevapları
BUSINESS FINANCE I Dersi Valuation of Bonds and Stocks soru detayı:
SORU:
What is yield-to-maturity?
CEVAP: Yield-to-maturity is the average rate of return that will be earned on a bond if it is bought at the market price and held until it matures. It is the discount rate that makes the present value of its future cash flows equal to its market price. It is like an internal rate of return of a bond.
Yield-to-maturity is the average rate of return that will be earned on a bond if it is bought at the market price and held until it matures. It is the discount rate that makes the present value of its future cash flows equal to its market price. It is like an internal rate of return of a bond.