The Rate of Return Required by Investors in the Market

question 85

Multiple Choice

The rate of return required by investors in the market for owning a bond is called the:

• A)coupon.
• B)face value.
• C)maturity.
• D)yield to maturity.
• E)coupon rate.

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Definitions:

Butte

A steep-sided, isolated hill or mountain with a flat top, usually formed through the erosion of sedimentary rocks.

Erosion

The process by which natural forces remove soils, rocks, or dissolved material from one location and transport it to another.

Igneous Rock

Rock formed through the cooling and solidification of magma or lava, with diverse types such as basalt and granite.

Metamorphosed

The process through which rocks undergo physical and chemical changes under high temperature and pressure conditions, forming metamorphic rocks.