Which of the Following Is True

question 80

Multiple Choice

Which of the following is true?

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Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date, considering all interest payments and the principal repayment.

Interest Rate Price Risk

The risk of losses in the values of financial instruments due to fluctuations in interest rates.

Original Maturity

This refers to the duration from the issuance of a bond or other fixed-income security until its due date.

Default Risk

The risk that a borrower fails to make the required payments on their debt obligation.