Sample resume for an HVAC technician Make sure your HVAC technician resume fully conveys the scope of your skills and training. This sample will show you how.
Yield to maturity is the discount rate at which the sum of all future cash flows from the bond (coupons and principal) is equal to the price of the bond. The YTM is often given in terms of Annual Percentage Rate (A.P.R.), but more usually market convention is followed.
Using the prior example, the estimated yield to maturity is 11.25%. However, after using this rate as r in the present value of a bond formula, the present value would be $927.15 which is fairly close to the price, or present value, of $920. Other examples may have a larger difference. A higher yield to maturity will have a lower present value or purchase price of a bond. In this example, the estimated yield to maturity shows a present value of $927.15 which is higher than the actual $920 purchase price. Therefore, the yield to maturity will be a little higher than 11.25%.