Investment A can be bought for 4 and will earn 1 per year over 6 years. What
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Investment A can be bought for 4 and will earn 1 per year over 6 years. What is the yield to maturity? Investment B costs 6 and earns 2 over 2 years, then 1.5 over 3 years.
What is the yield to maturity? Which investment would you rather have? Why? Do you need to know what the minimum rate of return is in order to make a decision?
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Related Book For 
Corporate Finance Theory And Practice
ISBN: 9780470721926
2nd Edition
Authors: Pierre Vernimmen, Pascal Quiry
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