Question

The internal rate of return generated by an fixed income investment , if held till maturity is known as

Answer 1

The internal rate of return generated by an fixed income investment , if held till maturity is known as

Answer 2

Yield to maturity or redemption yield.

This refers to the return earned when you hold a fixed investment to maturity. In economics, yield to maturity is calculated based on the current price of the investment in the market.

When calculating return on an investment yet to be made, economists make use of the IRR to estimate how much return one would earn or gain.