The Yield to Maturity Is

question 19

Multiple Choice

The yield to maturity is:

• A)the rate that equates the price of the bond with the discounted cash flows.
• B)the expected rate to be earned if held to maturity.
• C)the rate that is used to determine the market price of the bond.
• D)equal to the current yield for bonds priced at par.
• E)All of the above.

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Definitions:

Institutionalized

Describes practices, organizations, or activities that have become established and accepted as normative within society or culture.

Legitimate

Something that is recognized and accepted as right, legal, or in accordance with established standards.

Justified

Considered or deemed to be appropriate or valid under the circumstances.

Fundamental Characterization

The basic and essential description or analysis of the intrinsic properties or nature of something.