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Does one always earn the yield to maturity on bonds? Explain.

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Does one always earn the yield to maturity on bonds? Explain.

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Solution Summary

The solution explains the concept of yield to maturity including the circumstance where a bond holder may not receive the calculated yield.

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A bond's yield-to-maturity is the return you earn on a bond if bought today and held to maturity. It is equal to the return rate that sets the price you pay for the bond and equal to ...

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