Submitted by Behr1963 on February 16, 2008
Explanation of Yield to Maturity
Sometimes workplace discussions evolve into conversations about financial aspects of one’s life. Investments, 401K, certificates of deposit and other financially driven conversations can lead to one employee having to explain concepts to another employee. When one employee asks another for clarity due to confusion, if explained as simply as possible allows the questioner to understand better how his or her profits were in his or her favor financially. In one case specifically, an employee asks another why a 10% bond has a 9% yield to maturity as his or her broker stated repeatedly in a personal financial meeting. The amount of the bond can vary,...
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