The Yield to Maturity Is

question 9

Multiple Choice

The yield to maturity is:

• A)the rate that equates the price of the bond with the discounted cash flows.
• B)the expected rate to be earned if held to maturity.
• C)the rate that is used to determine the market price of the bond.
• D)equal to the current yield for bonds priced at par.
• E)All of the above.

---

Definitions:

Economy

The system of production, distribution, and consumption of goods and services in a particular geographic area.

Unemployment

The condition of being without a job, while actively searching for employment.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs.

Resources

The total means available for economic and political development, such as minerals, labor force, and finances.