Explain why the yield-to-maturity on a junk bond is not a particularly good measure of the return

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Explain why the yield-to-maturity on a junk bond is not a particularly good measure of the return you can expect if you buy it and hold it until maturity.

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Introduction to Corporate Finance What Companies Do

ISBN: 978-1111222284

3rd edition

Authors: John Graham, Scott Smart

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Question Posted: Mar 26, 2015 06:22 AM

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Explain why the yield-to-maturity on a junk bond is not a particularly good measure of the return

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Junk bonds represent a significant probability of default The YTM is the r...View the full answer

Introduction to Corporate Finance What Companies Do

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