‘Yield to maturity’ means the rate of return earned on security if it is held till maturity. This can be presented in a graph called ‘yield to maturity curve’ which represents the interest rates and the maturity of a security. The term structure of interest rates refers to the way in which the yield on […]
Yield to Maturity (YTM) of Debt | Security | Firm | Financial Management
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Yields of Stock: Factors and Computation | Firm | Financial Management
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In this article we will discuss about the factors determining yields on stock of a firm. Also learn about the computation of yields on stock. Factors Determining Yields: The general level of yields on stocks is determined by a complex of factors. I. Level of Interest Rates: A change in interest rates will affect security […]
Present Value and Discount Factors of Investments | Financial Management
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Learn how to calculate present value and discount factors of investment of a firm. Calculation of Present Value: It is a method of assessing the worth of an investment by inverting the compounding process to give present value of future cash flows. This process is called “discounting”. The present value of ‘P’ of the amount […]