The Yield to Maturity on a Bond Is ________

question 98

Multiple Choice

The yield to maturity on a bond is ________.

• A)below the coupon rate when the bond sells at a discount,and equal to the coupon rate when the bond sells at a premium
• B)the discount rate that will set the present value of the payments equal to the bond price
• C)based on the assumption that any payments received are reinvested at the coupon rate
• D)none of the above.
• E)A,B,and C.

---

Definitions:

Critical Thinking

The ability to analyze facts to form a judgment. It includes the evaluation of sources, such as data, facts, observable phenomena, and research findings.

Brain Imaging Tools

Technologies, such as MRI and CT scans, used to visualize the structure and function of the brain.

Improved Scanning

An enhanced method or strategy of visually or systematically examining information to identify key components more effectively.

Subjective Experience

The personal and internal perceptions, feelings, and thoughts one has, reflecting a unique standpoint and consciousness.