The Yield to Maturity of a Bond Is the ________

question 95

Multiple Choice

The yield to maturity of a bond is the ________ an investor will earn from holding the bond to maturity and receiving its promised payments.

• A) IRR
• B) coupon rate
• C) rate of return
• D) capital gain

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Definitions:

Insufficient Capacity

A situation where a company does not have enough resources, such as manpower or machinery, to meet current or future production demands.

Contribution Margin

The difference between sales revenue and variable costs, indicating the amount contributing to covering fixed costs and profit.

Variable Cost

A cost that changes in proportion to the level of output or activity in a business.

Special Discounted Price

A reduced price offered on goods or services, usually as part of a promotional deal or to certain groups of customers.