Mlima Co (June 2013)

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September 7, 2017 at 8:37 am #406315
cys94
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Dear John,

As per appendix 4, why we assume Yield to Maturity is 7%? Do we always assume YTM equals to the borrowing rate?
September 7, 2017 at 9:26 am #406338
John Moffat
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The yield to maturity will equal the lenders required rate of return, which we assume to be the same required return as that on other future borrowings (unless obviously told different 🙂 )
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