Start learning →

Yield to maturity on a bond is an application of which measure?

AInternal rate of return
BProfitability index ratio
CDiscounted payback period
DAccounting rate of return
Answer & Solution
Correct answer: A. Internal rate of return
Yield to maturity is the rate that equates the bond price to the present value of its promised cash flows, which is an IRR.
Practise this question with Quill — CA Inter →

Keep practising Internal Rate of Return

Browse all Internal Rate of Return questions for CA Inter, or explore more Financial Management topics.

Start a Internal Rate of Return lesson →
Related questions