Which of the Following Is NOT a Definition of Yield

question 54

Multiple Choice

Which of the following is NOT a definition of yield to maturity?

• A) discount rate that equates present value of future cash flows with a bond's price.
• B) investors' required rate of return on a bond investment.
• C) return that an investor will earn if they buy the bond for its market price and hold it until maturity.
• D) discount rate that equates present value of future cash flows with a bond's face value.

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Definitions:

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, minus the number of parameters estimated.

Number of Treatments

The total count of distinct experimental conditions applied in research to assess their effects on outcomes.

MSB

Marginal Social Benefit; the additional benefit to society from one more unit of a good or service being produced and consumed.

SS(Total)

The total sum of squares in regression analysis, representing the total variation in the dependent variable.