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Essay heading: Yield To Maturity Paper
 
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Issue: Business
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Date added: May 2, 2007
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No of pages / words: 4 / 1007
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Interest is the price paid to borrow an amount of money for one year and is expressed as a percentage. “The yield to maturity is used to define the rate of return that an investor will receive if a long-term bond is held until its maturity date” (Oglesby, 2007). According to Block, three factors influence the rate of return on a bond...
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According to Block, three factors influence the rate of return on a bond. The real rate of return is similar to rent paid for an apartment. Charges you, the investor receive the from the investment firm for using your funds over a duration of time. An inflation premium is a provision that obliges a premium will be paid to account for potential economic instabilities that will inflate the value of the money...
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