Yield to Maturity Is Always Realized as Promised: A Reply

Richard Cebula () and Bill Yang

MPRA Paper from University Library of Munich, Germany

Abstract: This note attempts to further elaborate why it is a myth that YTM is viewed as only a promised but not really earned interest rate. It addresses some misconceptions regarding what, between YTM and RCY, is a true rate of return of a coupon bond, why YTM is NOT just a “fictitious mathematical construct”, and why YTM has nothing to do with yield curve.

Keywords: yield to maturity; rate of return; yield curve (search for similar items in EconPapers)
JEL-codes: G12 G19 G30 (search for similar items in EconPapers)
Date: 2008-01-02
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Published in Journal of Economics and Finance Education 2.8(2009): pp. 38-41

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