The Yield to Maturity Is the Discount Rate That Makes

question 59

True/False

The yield to maturity is the discount rate that makes the present value of coupon and principal payments equal to the price of the bond.

---

Definitions:

Tax Cuts

Reductions in the amount of taxes imposed by a governing body, typically aimed at stimulating economic growth or achieving other fiscal policy goals.

Crowding-In Effect

An economic concept where increased government spending leads to higher private sector investment, contrary to the crowding-out effect.

Aggregate Demand

Aggregate economic demand for products and services, assessed at a certain overall price point during a predefined time span.

National Debt

The total amount of money that a country's government has borrowed and not yet repaid, often through the issuance of securities.