What Is Meant by "Yield to Maturity"? It Is Measured

question 8

Multiple Choice

What is meant by "yield to maturity"? It is measured as the:

• A) coupon payment divided by the face value of the bond.
• B) coupon payment divided by the current price of the bond.
• C) rate that equates the bond's current price with the PV of its expected future cash flows.
• D) rate that equates the bond's face value with the PV of its expected future cash flows.

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Definitions:

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