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What is Yield to Maturity Explained about?

Understanding Interest Rates 1) Interest rates measure the cost of borrowing and the return on lending, with different debt instruments having different cash flow patterns and interest rates. 2) There are four main types of credit market instruments: simple loans, fixed payment loans, coupon bonds, and discount bonds. 3) The yield to maturity equals the internal rate of return and measures the interest rate that equates the present value of future cash flows to the current price of the instrument.

Author

anita julia

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EN