The expected rate of return on a bond if it is held until maturity is called:
اگر بانڈ کو اس کی میعاد پوری ہونے تک رکھا جائے تو متوقع شرحِ منافع کو کیا کہتے ہیں؟
- Coupon Rate
- Yield to Maturity
- Dividend Yield
- Discount Rate
Explanation
- The expected rate of return on a bond if it is held until maturity is called the yield to maturity (YTM).
- It represents the internal rate of return for
- The investment,
- Combining all coupon payments,
- The current market price,
- The final face value payout upon maturity.