Th?

Question

Th?

Quizplus · Accepted Answer

Yield to maturity is the most comprehensive measure of a bond's return, taking into account the present value of all future cash flows and the bond's market price. It includes the annual interest payments (coupon) as well as the difference between the purchase price and the face value of the bond at maturity. Current yield only considers the annual interest payments and does not account for changes in market price, while discount yield is only applicable to bonds purchased at a discount and does not consider the bond's maturity value. Coupon rate is the fixed annual interest rate that the bond pays at issuance, but it does not reflect changes in market price or the bond's total return.