contestada

Longer maturity bonds have high risk but low risk, while higher coupon bonds have a higher level of risk and a lower level of risk. To account for the effects related to both a bond's maturity and coupon, many analysts focus on a measure called , which is the weighted average of the time it takes to receive each of the bond's cash flows.?

Respuesta :

Answer:

Yield to Maturity

Explanation:

To account for the effects related to both a bond's maturity and coupon, many analysts focus on a measure called yield to maturity, which is the weighted average of the time it takes to receive each of the bond's cash flows.

A bond's yield to maturity can be defined as the value of returns an investor will make on a bond from the time of purchase to the time of maturity which includes all annual returns plus the difference between the price of the bond and its value at maturity.

Otras preguntas