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redemption yield

Zzee9012y ago
what is redemption yield ?
John MoffatJohn MoffatTutor12y ago#1
It is what you might call the overall return to investors (the combination of the interest and any gain/loss on redemption (repayment)) To calculate it you calculate the IRR of the cash flows to the investor (same as calculating the cost of redeemable debt, only without the tax saving on interest).
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