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The Yield to Maturity Is Also Known as the Discount

question 39

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The yield to maturity is also known as the discount rate and is the rate of return required by bondholders.


Definitions:

Red Bone Marrow

Vascularized, modified connective tissue that is sometimes found in the cavities of spongy bone; site of blood cell formation.

Medullary Cavity

The central cavity of bone shafts where yellow marrow (fat cells) is stored.

Dense Fibrous Connective Tissue

Type of connective tissue containing many collagen fibers packed together; found in tendons and ligaments, for example.

Spongy Bone

Type of bone that has an irregular, meshlike arrangement of thin plates of bone.

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