Yield to Maturity
When purchasing a bond there are so many different factors that come in to play. One important factor is yield to maturity, “the rate of return anticipated on a bond if it is held until the maturity date” (Investopedia). This can be very confusing for some people because they don’t understand why they buy a bond at a certain rate, but the yield to maturity date is different. An example of this is a co-worker bought a 10% bond, but her broker told her that it has a 9% yield to maturity. The numbers are different because if the bond was purchased at 10% and it was held on to until the maturity date they do not want the customer to get all of their money back. When the yield to maturity rate is a little bit lower than the bond then the brokers are still making money.
Yield to maturity is only in affect if the bond is held until the maturity date. If the bond is cashed in before the maturity date, the customer wont receive that extra. The brokers are......

Join Now to view the rest of this term paper!
Members: Login to view this research paper.

Title: Yeild To Maturity
Approximate Word Count: 441
Approximate Pages: 2 (250 words per double-spaced page)

With the Term Papers Lab Membership Pass, you get instant access to every essay on this site, including this essay on Yeild To Maturity, for as long as you remain a member.

Other essays sites charge almost $100 for a single term paper. At Term Papers Lab, you can get instant access to over 100,000 research papers for as little as $29.95!