Yield to Maturity

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Issue:

Business

 

Written by:

Aileen G

 

Date added:

May 3, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 567

 

Was viewed:

639 times

 

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Essay content:

It is the financial rent the investor charges for using his or her funds for any given period. 2. Inflation Premium ? The investor requires a premium to compensate for the eroding effect of inflation on the value of a dollar. The inflation premium added to the real rate of return ensures that an investor receives their risk free rate of return...
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Risk Premium - There are two types of risks: business risk and financial risk. (Block, 2005) A bond is a certificate that serves as evidence of a debt and of the terms under which it is undertaken. (Allbusiness, 2007) It is greater than the current yield if the bond is selling at a discount and less than the current yield if the bond is selling at a premium...
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