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Yield to Maturity (YTM) means What? a) NPV b) IRR c) COST OF CAPITAL d) RATE OF RETURN

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Question added by Jijumon James , SENIOR ACCOUNTANT , BADR AL SAMAA HOSPITAL
Date Posted: 2015/01/10
Muhammad Rafeeq
by Muhammad Rafeeq , Asst. Finance Manager , Caltrols Fzco

Yield to maturity is a concept often used in the valuation of fixed-income securities, based on the principles of time value of money and safe money versus risky money. A yield to maturity is the effective interest rate earned on an investment for a particular price, assuming that the investor holds the investment to maturityAnswer is (b). IRR

 

AZHAR NAWAZ
by AZHAR NAWAZ , Assistant Manager Accounts , Quantum Geoservices (Pvt) Ltd

C

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