Plain Vanilla Debt



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what does YTM of a bond mean?quiz is based on this which is not mentioned in this module.

1 Answer(s)


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YTM or Yield to Maturity is the return the investor will get on a bond if it is help till maturity.
So you have to add up all the future cash flows you will get from the bond (the interest + the principal).

Here is a good article on the topic - http://en.wikipedia.org/wiki/Yield_to_maturity