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Yield to Maturity
Essay specific features
Written by:
Aileen G
Date added:
May 3, 2015
Level:
University
Grade:
A
No of pages / words:
3 / 567
Was viewed:
639 times
Rating of current essay:
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...
displayed 300 characters
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