The yield-to-maturity of a bond with a finite maturity date is a function of all of the following variables EXCEPT the ____________.
A) current price
B) required rate of return on the bond
C) uniform annual interest payments
D) maturity value

Question

Quizplus · Accepted Answer

The yield-to-maturity of a bond is determined by its current price, uniform annual interest payments, and maturity value. The required rate of return on the bond is not a variable in calculating yield-to-maturity; instead, it is an outcome of the calculation or a market-determined rate that influences the current price of the bond.

The Yield-To-Maturity of a Bond with a Finite Maturity Date