Which of the following is FALSE? 1. Because we can convert any bond price into a yield,
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Question:
Which of the following is FALSE?
1. Because we can convert any bond price into a yield, and vice versa, bond prices and yields are often used interchangebly
2. The iRR of an investment in a bond is given a special name, the yield to maturity (YTM)
3. Unlike the case of bonds that pay coupons, for zero-coupon bonds, there is no simple formula to solve for the yield to maturity directly
4. One advantage of quoting the yield to maturity rather than the price is that the yield is independent of the face value of the bond.
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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