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YTM of company Vs. individual investor

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › YTM of company Vs. individual investor

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by Stephen Widberg.
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  • January 3, 2021 at 2:07 am #601326
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    Sir the effective rate of interest or YTM would be different for both the company and individual investors, right? as issue costs incurred by individuals are minimal compared to the issue costs of the company, so when calculating YTM there could be a discrepancy in the YTM rates, right?

    January 3, 2021 at 9:35 am #601351
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3442
    • ☆☆☆☆☆

    I think so – but that’s something more relevant to AFM not SBR.

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