Which of the Following Statements Are Correct Concerning Yield-To-Maturity (YTM)

question 56

Multiple Choice

Which of the following statements are correct concerning yield-to-maturity (YTM) ?
I. YTM considers both interest income and price appreciation.
II. YTM assumes the bond is called at the earliest possible date.
III. YTM is a compounded rate of return.
IV. YTM assumes all interest payments are reinvested at the YTM rate.

• A) I and IV only
• B) I, III and IV only
• C) II, III and IV only
• D) I, II and III only

---

Definitions:

Relational Focus

The emphasis on building and maintaining positive relationships within a team or organization as a key component of success.

Egalitarian

A principle or practice that promotes equality among people, dismissing differences in status, wealth, or power.

Hierarchical

Describes a system or organization where entities are ranked one above the other according to status or authority.

Cultural Values

these are the core principles and ideals upon which an entire community exists, influencing behavior, perceptions, and laws within that society.