What Does the Yield to Maturity on Bonds Refer To

question 28

Multiple Choice

What does the yield to maturity on bonds refer to?

• A)the number of years before the bond's maturity
• B)the amount of interest income received by investors each year
• C)the promised rate of return on the bonds if purchased at current price and held to maturity
• D)the capital gain that investors can get in relation to the average industry price of the bonds

---

Definitions:

Decision Making

Decision making involves choosing between two or more options or courses of action based on reasoning, preferences, or available information.

Transitional Thinking

Involves adapting one's mindset and approach in response to changing circumstances or moving from one phase of life to another.

Self-Serving Bias

The common tendency to attribute our successes to personal characteristics and our failures to external factors.

Total Egocentrism

A cognitive state where an individual is unable to differentiate between their own perspective and that of others, typically seen in early childhood development.