Yield to Maturity Is Always Realized as Promised: A Reply

This note attempts to further elaborate why it is a myth that YTM is viewed as only a promised but not really earned interest rate. It addresses some misconceptions regarding what, between YTM and RCY, is a true rate of return of a coupon bond, why YTM is NOT just a “fictitious mathematical construct”, and why YTM has nothing to do with yield curve.

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Year of publication:	2008-01-02
Authors:	Cebula, Richard ; Yang, Bill
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	yield to maturity \| rate of return \| yield curve

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Notes:	Published in Journal of Economics and Finance Education 2.8(2009): pp. 38-41
Classification:	G12 - Asset Pricing ; G19 - General Financial Markets. Other ; G30 - Corporate Finance and Governance. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011112771