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YTM represents total return of the bond. the rate at which future cash flows are discounted to arrive at the current price of a bond.
- YTM represents
- total return of the bond.
- the rate at which future cash flows are discounted to arrive at the current price of a bond.
- total coupons to maturity of the bond
- Total Return is composed of a. YTM earned plus Duration. b. Income Earned over the Horizon plus Market Value Change at the Horizon. c. Convexity plus Duration.
- total return of the bond.
- the rate at which future cash flows are discounted to arrive at the current price of a bond.
- total coupons to maturity of the bond
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Essentials of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
9th edition
978-1259277214
