The _____ is equal to the average rate of return that investors require to provide funds to the firm in the form of debt.
A) Coupon rate
B) Yield to maturity (YTM)
C) Maturity value
D) Discount rate
E) Internal rate of return

Question

Quizplus · Accepted Answer

The Yield to Maturity (YTM) is the average rate of return that investors require for providing funds to the firm in the form of debt, as it represents the total return anticipated on a bond if it is held until it matures.

The _____ Is Equal to the Average Rate of Return