The ____ takes the time value of money into account when calculating investment returns.
A) Yield to maturity
B) Payback period
C) One-year yield
D) Current yield
E) Coupon rate

Question

Quizplus · Accepted Answer

Yield to maturity (YTM) considers the time value of money by calculating the total return of a bond if held until its maturity date, including all coupon payments and the difference between its purchase price and its face value.

The ____ Takes the Time Value of Money into Account