valuation of bond

AFM

what is the meaning of current yeild...how is it different from YTM?

nazriya nasar

CA Final

★ 7K+

02-Dec-22 19:02

622

Answers (2)

The annual income from an investment, which includes dividend and interest payments, is divided by the bond's current price to determine its yield. A bond's current yield is determined by dividing its annual coupon payment by its current market value.

Sowmiya A

CA Inter

★ 19K+

03-Dec-22 07:25

Yield to maturity (YTM) is the expected total return on a bond if it is held until maturity. It is the internal rate of return (IRR) on a bond investment if the investor holds the bond until maturity, with all payments made as scheduled and reinvested at the same rate.

Sowmiya A

CA Inter

★ 19K+

03-Dec-22 07:31