In the ActEd CM1 notes, Chapter 13: They discuss the yield to maturity and then go on to ask a question where we solve for gross redemption yield. Are yield to maturity and gross redemption yield one and the same thing? Also, from Chapter 11 where we learnt that the Internal Rate of return is the interest rate at which discounted income is equal to discounted outgo. Is IRR the same as gross redemption yield?
The yield to maturity is the same as the redemption yield. The gross redemption yield means that we're not accounting for any tax in our calculations. The internal rate of return is the same concept, i.e. it's the single rate of interest that results in PV income = PV outgo, but this is in the context of project appraisal rather than bonds.
