The Yield to Maturity of a Bond Is the Discount

question 1

True/False

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

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Definitions:

Weekly Cash Flows

An accounting measure used to monitor the cash movement in and out of a business on a weekly basis.

BAT Model

Behavioural Analysis Technology Model, used in various fields to anticipate or analyze human behavior; if not applicable, NO.

Opportunity Cost

The lost potential gain from other alternatives when one option is chosen.

Interest Rate

The percentage of a loan amount charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage.