The yield-to-maturity formula takes account of receipts of income from a security but not repayments of the principal of a loan.

Name: The yield-to-maturity formula takes account of receipts of income from a security but not repayments of the principal of a loan.
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The yield-to-maturity formula considers both the income receipts (such as interest payments) and the repayment of the principal at maturity, as it aims to measure the total return of the bond if held to maturity.

The Yield-To-Maturity Formula Takes Account of Receipts of Income from a Security