The rate of return that an investor demands is referred to as
A) Coupon-equivalent
B) Bond-equivalent
C) Investment rate of return
D) All of the above
E) None of the above

Question

Quizplus · Accepted Answer

The rate of return that an investor demands is referred to as the investment rate of return. The coupon-equivalent and bond-equivalent are both measures of the yield of a bond, but they do not take into account the investor's required rate of return.

The Rate of Return That an Investor Demands Is Referred