The Discount Rate That Makes the Present Value of a Bond's

question 96

Multiple Choice

The discount rate that makes the present value of a bond's payments equal to its price is termed the:

• A)Rate of return
• B)Yield to maturity
• C)Current yield
• D)Coupon rate

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Definitions:

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A sector of the government responsible for managing government revenue, including producing coins and bills, issuing Treasury bonds, and other financial instruments.

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The management and organization of all the activities of a government or institutional body.

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