The Bond's Yield to Maturity Is

question 54

Multiple Choice

The bond's yield to maturity is

• A)the guaranteed yield.
• B)the expected yield.
• C)the promised yield.
• D)the realised yield on the bond.

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Definitions:

Liquidate

The process of converting assets into cash or equivalent by selling them, often used in the context of closing a business or paying off debts.

Profits

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Oil Future Contract

A legal agreement to buy or sell a specific amount of crude oil at a predetermined price at a specified time in the future.

Spot Price

The existing cost at which an asset is available for immediate purchase or sale.