The yield to maturity is the that equalizes the present value of payments from a bond to its .
A)interest rate; face value
B)interest rate; current price
C)coupon payment; face value
D)time; interest rate

Question

Quizplus · Accepted Answer

The yield to maturity is the interest rate that would make the present value of a bond's future cash flows equal to its current price. Therefore, it is the interest rate that is being solved for, and it is compared to the current price of the bond, not its face value or coupon payment.

The Yield to Maturity Is the That Equalizes the Present