is YTM basically IRR for bond?

CFA Level I
#1

[original post removed]

#2

Yes.

#3

YTM is the rate that makes the future cash flows equal to the current price of the bond

#4

Yes, I know, which is why I asked the question in the first place…

#5

Then it seems you already knew the answer.

#6

I knew what YTM was, I was not sure if it is the same thing as IRR, which is why I asked the question.

#7

If you had looked up the definition of IRR, you’d have seen that they’re the same.

And looking it up yourself will lock it into your memory a lot more solidly than having someone here give you the answer.

#8

I did looked it up, which is why I found it weird that they have the basically the same thing, which is why I wondered why they are not labelled with the same terminology, hence why i asked to here to confirm.

So basically

IRR is for corporate projects.

YTM (Aka. YTR) are for fixed interest securities.

#9

IRR is for any investment, not merely corporate projects.

#10

yes, YTM is basically IRR.

#11

Yes. YTM is the discount rate that brings the sum of the present value of all the future cash flows related to the bond to equate with its price.