The yield to maturity is the discount rate that makes the present value of the cash flows of a bond equal to its:
A) Par value.
B) Redeemable value.
C) Market value.
D) Coupon rate.
E) None of the above.
Correct Answer:
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Q1: The rate earned on federal government debt
Q2: When the entire principal can be repaid
Q3: Debt contracts with no periodic interest payments
Q4: The price of a debt instrument must
Q6: If interest rates in the economy increase
Q7: The value of a bond depends on:
A)
Q8: Which of the following statements is most
Q9: If the Treasury rates does not change,
Q10: If the market price of a bond
Q11: The yield to maturity takes into account:
A)
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