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The Yield to Maturity Is The

Question 5

Multiple Choice

The yield to maturity is the:


A) discount rate that equates a bond's price with the present value of the bond's future cash flows.
B) rate you will earn if your bond is called on the earliest possible date.
C) rate computed by dividing the annual interest by the par value.
D) rate used to compute the amount of each interest payment.
E) rate computed as the annual interest divided by the market value.

Correct Answer:

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