The Yield to Maturity on a Bond Is the Rate

question 27

Multiple Choice

The yield to maturity on a bond is the rate

• A)computed as the annual interest divided by the bond's market price.
• B)an investor earns if the bond is sold prior to the maturity date.
• C)of annual interest initially offered when the bond was issued.
• D)of return currently required by the market.
• E)of annual interest paid on the bond.

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Definitions:

Affirmative Defense

A response to a plaintiff's claim which, if proven, diminishes or eliminates liability.

Summons

A legal document issued by a court that orders an individual to appear before it at a specific time and place to respond to a legal action or proceeding.

Default Judgment

A court decision in favor of the plaintiff when the defendant fails to respond or appear in court.

Voir Dire

The process of questioning potential jurors to ensure that the jury will be made up of nonbiased individuals.