What Is Meant by "Yield to Maturity

question 13

Multiple Choice

What is meant by "Yield to Maturity"?

• A) The coupon interest rate paid each year, divided by the face value of the bond.
• B) The coupon interest rate paid each, divided by the current price of the bond.
• C) The periodic interest rate that equates the current price with the expected future flows.
• D) The periodic interest rate that equates the current price with the expected future flows, up to the time of the first call.

---

Definitions:

Unincorporated

Refers to a business or organization that hasn't been legally established as a corporate entity, and thus, its owners bear personal liability for its debts and actions.

Net Profits

The amount of money left after all operating expenses, taxes, interest, and preferred stock dividends have been deducted from total revenue.

Dress Boutique

A specialty retail store that focuses on selling dresses and often offers a variety of styles from casual to formal wear.

Share the Loss

A principle or agreement among parties to divide financial losses incurred from a venture, investment, or project among themselves.