Which of the Following Is NOT a Definition of Yield

question 54

Multiple Choice

Which of the following is NOT a definition of yield to maturity?

• A) discount rate that equates present value of future cash flows with a bond's price.
• B) investors' required rate of return on a bond investment.
• C) return that an investor will earn if they buy the bond for its market price and hold it until maturity.
• D) discount rate that equates present value of future cash flows with a bond's face value.

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Definitions:

Price

The financial value estimated, demanded, or offered in recompense for something.

Psychology Students

Psychology students are individuals studying the science concerned with behavior and mental processes, learning about human nature, mental health, and social interactions.

Psychologists

Professionals specializing in the study of mind and behavior, including human emotional, cognitive, and social processes.

Supply

Refers to the total amount of a product or service that is available to consumers.