The Yield to Maturity on a Bond Is ________

question 29

Multiple Choice

The yield to maturity on a bond is ________.
I.above the coupon rate when the bond sells at a discount,and below the coupon rate when the bond sells at a premium
II.the discount rate that will set the present value of the payments equal to the bond price
III.equal to the true compound return on investment only if all interest payments received are reinvested at the yield to maturity

• A) I only
• B) II only
• C) I and II only
• D) I, II and III

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Definitions:

Third-Country National

An individual employed by a company who is neither a citizen of the country where the company is headquartered nor of the country where they are working.

Host-Country National

An individual who is a citizen of the country in which a foreign subsidiary or company operates.

Parent-Country National

An individual who is employed by an organization or corporation in their home country and is working in another country where the organization operates.

Multinational Company

An organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs.