Asked by Estefania Carlos on May 02, 2024
Verified
Provide an appropriate definition of yield to maturity.
Yield to Maturity
The total return anticipated on a bond if the bond is held until it matures, including all interest payments and the repayment of principal.
- Comprehend the influence of yield to maturity on the valuation of bonds and the returns on investment.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
The market interest rate that equates a bond's present value of interest payments and principal repayment with its price.
Learning Objectives
- Comprehend the influence of yield to maturity on the valuation of bonds and the returns on investment.