Question
When computing an assets yield to maturity, does this represent a known or expected amount of return, why? Yield to maturity represents the known amount
When computing an assets yield to maturity, does this represent a known or expected amount of return, why?
Yield to maturity represents the known amount of return and cannot change. | ||
Yield to maturity represents the expected amount of return based on the future timing and size of cash flows, the yield to maturity can change if the future timing and size of cash flows change. | ||
Yield to maturity represents the promised amount of return from the issuer of the security and reflects the par value, coupon rate and maturity of the asset. | ||
Yield to maturity represents the expected amount of return based on the securities par value, coupon rate and maturity of the asset. |
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