YieldtoMaturityonAnInterestPaymentDate幻灯片.pptVIP

Chapter 15BONDS AND SINKING FUNDS 15.3 Yield to Maturity on An Interest Payment Date Yield to maturity: The discount rate that makes the present value of the bond’s remaining cash flows equal to its purchase price. It represents the rate of return a bondholder will realize if the bond is held from the purchase date until maturity. It is standard price to quote the YTM as a semiannually compounded nominal annual rate. YTM is “locked in” by the price you pay for the bond—the higher the purchase price, the lower the bond’s YTM. Example A $1000 face value Province of Manitoba bond, bearing