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Yield to Maturity
Inside this lesson
- Define yield to maturity as an internal rate of return.
- Estimate a yield to maturity with the approximation formula.
- Explain why yield to maturity must be found by iteration, not algebra.
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Educational content only. This course explains finance concepts and the math behind them; it is not financial, investment, tax, accounting, or trading advice, makes no recommendations, and predicts no returns, prices, or outcomes. All figures are illustrative teaching examples. Consult a qualified professional before making financial decisions.