The Yield That a Bond Will Earn Given That It

question 58

Multiple Choice

The yield that a bond will earn given that it is bought back by the issuer at the earliest possible date is the:

• A)market yield.
• B)current yield.
• C)yield to maturity.
• D)yield to put.
• E)yield to call.

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Definitions:

Reasonable Time

An undefined period which is fair and appropriate under the circumstances for the performance of a certain action or fulfillment of a duty in a legal context.

Offer Expired

A situation where a proposal for a contract or agreement has reached its time limit without acceptance, rendering it void.

Communicating Acceptance

The process by which the party to whom an offer has been made notifies the offeror that they accept the terms of the offer.

Specified Means

A clearly defined method or procedure outlined for achieving a given end or goal.