The Yield to Maturity on a Bond Is the Rate

question 66

Multiple Choice

The yield to maturity on a bond is the rate:

• A)computed as annual interest divided by the bond's market price.
• B)an investor earns if the bond is sold prior to the maturity date.
• C)of annual interest initially offered when the bond was issued.
• D)of return currently required by the market.
• E)of annual interest paid on the bond.

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Definitions:

Successive Approximations

A technique used in behaviorist psychology, involving the reinforcement of behaviors that are increasingly similar to the desired behavior.

Operant Conditioning

A method of behavior modification where the intensity of an action is influenced by positive or negative reinforcement.

Shaping

A method of positive reinforcement of behavior patterns in operant conditioning.

Simpler Response

A basic or more straightforward reaction or answer to a stimulus or question, often requiring less cognitive or emotional effort.