Bond valuation and yield to maturity

The MV is the PV of the future receipts from bonds. In Paper FM we assumed that the investors required return would remain constant and discounted all the receipts at the same rate. In Paper AFM we take into account that the required return will change over time. The yield to maturity is the overall return to investors and is the IRR in the normal way. The technical article on the ACCA website on "Bond valuation and bond yields" explains all this with examples.