A Bond's Yield to Maturity Is Equal to the Internal

question 65

True/False

A bond's yield to maturity is equal to the internal rate of return of its cash flows.

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Definitions:

Accounting Standards

Guidelines and rules established by accounting organizations for preparing and reporting financial statements.

International Financial Reporting Standards

A set of accounting standards and guidelines developed and maintained by the International Accounting Standards Board (IASB) that is used internationally to ensure financial statements are transparent, comparable, and consistent.

U.S. GAAP

United States Generally Accepted Accounting Principles, a set of rules and standards for financial accounting and reporting in the U.S.

Asset Test

A measure used to determine the liquidity of a company by comparing its liquid assets to its current liabilities.