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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › redemption yield
what is redemption yield ?
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).
