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

Name: A bond's yield to maturity is equal to the internal rate of return of its cash flows.
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Quizplus · Accepted Answer

The yield to maturity (YTM) of a bond is indeed equal to the internal rate of return (IRR) of its cash flows, as both concepts represent the discount rate at which the present value of all future cash flows (coupons and principal repayment) equals the bond's current price.

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