§Yield to Maturity A measure of the
average rate of return on a bond if held to maturity.To compute it, we define the length of a period
as 6 months, and then calculate the internal rate of return per
period.Finally, we double the
six-monthly IRR to get the bond equivalent yield, or yield to
§Effective Annual Yield Take the
six-monthly IRR and annualize it by compounding.