Skip to content

Ask the Tutor ACCA FM

Redemption yield

CCarl2y ago
Is the redemption yield the same as the pre-tax cost of debt? In a question if I am given the redemption yield and asked to calculate the current market value of a loan note, I can use the redemption yield to do so?
IAW3005IAW3005Tutor2y ago#1
Yes, the redemption yield is the same as the pre-tax cost of debt.
Sign into reply to this topic.