The Yield to Maturity Is the That Equalizes the Present

question 24

Multiple Choice

The yield to maturity is the that equalizes the present value of payments from a bond to its .

• A)interest rate; face value
• B)interest rate; current price
• C)coupon payment; face value
• D)time; interest rate

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Definitions:

Nominal Accounts

Accounts that are used in accounting to record expenses, incomes, losses, and gains; these accounts are closed at the end of the accounting period.

Closing Entry

A journal entry made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts.

Debited

An accounting term indicating that an amount has been recorded on the left side of a ledger or account, increasing assets or decreasing liabilities and equity.

Rent Expense

An expense account that records the cost incurred by a business to rent a property or equipment for its operations.