Examlex
Which of the following businesses is most likely to use rate-of-return pricing?
Strip Bond
A bond that has had its coupon payments and principal repayment separated, creating zero-coupon securities from a regular bond.
Yield to Maturity
The total return anticipated on a bond if the bond is held until its maturity date, taking into account both interest payments and capital gain or loss.
Term to Maturity
The remaining time until a debt instrument, such as a bond or loan, reaches its due date and the principal must be repaid.
Priced
Determination of the value or amount that must be paid to acquire a good, service, or asset.
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