This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Also called the yield to maturity (y) Adjusts for the timing of interest and principal payments cash flows (CF) Usually, rate of return refers to the interest actually received by the lender for a period of time (e.g. when asset was owned) May differ from yield to maturity if something happens after the asset is bought. The discount rate refers to the interest rate used to prove an asset to take into account risk, etc. (r) Is the same as the interest rate and should equal the yield to maturity...
View Full Document
This note was uploaded on 02/19/2010 for the course ECON 1313212 taught by Professor John during the Spring '09 term at The School of the Art Institute of Chicago.
- Spring '09
- Interest Rates