The yield on a bond is
A) the amount of money the borrower agrees to pay the bondholder each year divided by the face value of the bond.
B) the amount of money the borrower agrees to pay the bondholder each year.
C) the amount of money the borrower agrees to pay the bondholder each year divided by the current market price of the bond.
D) the amount of principal that will be paid back when the bond matures.
E) fixed for the life of the bond.
Correct Answer:
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