The discount rate that makes the present value of the bond's payments equal to its price is known as the?

Question

12-09-2022
Business

contestada

The discount rate that makes the present value of the bond's payments equal to its price is known as the?

Respuesta :

Otras preguntas

What does president reagan mean when he say that “certain foreign news broadcasts are no longer being jammed”?

According to ___________, quantitative changes in an infant's abilities to organize and manipulate information represent the hallmarks of cognitive development.

Phil lives in a country that is heavily dependent on fishing for its livelihood. In which type of economy does Phil live? A. Secondary B. Manufacturing C. Terti

Where do you think they found fossil evidence of simple land plants and amphibians

which expression is represented by the phrase"the square of x increased by the product of 8 and x A. x^3 + 8 - x B. x^2 + 8x C. x^2 + 8 - x D. x^3 + 8x

In the sanger (dideoxy) method for dna sequencing, a small amount of a dideoxynucle- otide triphosphate—say, ddctp—is added to the sequencing reaction along wit

when rolling a number cube numbered 1-6 what is the probability you will roll a 3,4,or 5 three times in a row

_____ is a measure of your ability to work with and adapt to people from other backgrounds. cultural quotient emotional quotient emotional intelligence intellig

The technique that injects oxygen and nutrients into a contaminated aquifer to foster the growth of bacteria that can break down contaminant molecules is called

Cliff has colorblindness and icthyosis, which causes scaly skin. both traits are x-linked recessive. the probability that he transmits both traits to his sons i

choprayogita110 choprayogita110 · Answer 1 · 2022-09-14T15:17:07+02:00

The internal rate of return (IRR) of the bond is expressed as yield to maturity (YTM). The discount rate that compares the present value of future cash flows to the initial investment is known as the IRR for a project. The discount rate, as used in capital budgeting, is what brings the net present value (NPV) to a negative number.

Yield to maturity (YTM) is the overall rate of return that a bond will have earned once all interest payments are made and the principal is repaid. In essence, YTM represents the internal rate of return (IRR) on a bond if held to maturity.

The annual income from an investment, which includes dividend and interest payments, is divided by the security's current market value to determine a bond's current yield. The total return anticipated on a bond if it is held until its maturity date is known as yield to maturity (YTM).

Learn more about yield to maturity (YTM) here

https://brainly.com/question/26376004

#SPJ4