Yield To Matrity
Running head: YIELD TO MATURITY
Yield to Maturity
Johanna Sutton
University of Phoenix
Yield to Maturity
Individuals looking to invest in bonds should be aware of the various terms used to describe the aspects that accompany the purchase. Three specific terms are primary when purchasing a bond, the par value, coupon rate, and maturity date. The par value is the money received once the bond had matured. Coupon rate is the interest rate the investor will gain as a percentage of the par value. Lastly the maturity date is when the issuer has to pay back the principle. Bonds can be purchased both above and below par value, which is identified as at premium or discount. Because of this condition investors frequently use yield to maturity. This paper will explain the concept of the yield to maturity.
Concept of Yield to Maturity
Yield to maturity (YTM) is the rate of return (ROR) in which the investor gains from payments of principle and interest. The......
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Approximate Word Count: 410
Approximate Pages: 2 (250 words per double-spaced page)
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Yield To Matrity
Yield To Matrity Running head: YIELD TO MATURITY Yield to Maturity Johanna Sutton University of Phoenix Yield to Maturity Individuals looking to invest in bonds should be aware of
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