A bonds expected return is sometimes estimated by its YTM and sometimes by its YTC. Under what

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A bond’s is sometimes estimated by its YTM and sometimes by its YTC. Under what conditions would the YTM provide a better estimate, and when would the YTC be better?

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...

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Fundamentals of Financial Management

ISBN: 978-0324664553

Concise 6th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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Question Posted: Oct 05, 2011 07:58 AM

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A bonds expected return is sometimes estimated by its YTM and sometimes by its YTC. Under what

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Assuming a bond issue is callable the YTC is a better es...View the full answer

Fundamentals of Financial Management

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