If an investor buys a bond and holds it until it matures, the average rate of return the investor will earn per year is called the bond's:

Question

Quizplus · Accepted Answer

Yield to maturity is the average rate of return an investor will earn per year if they hold a bond until it matures, taking into account factors such as the bond's coupon rate and current market price. This is the most accurate measure of the bond's return, as it considers both the interest payments and any capital gains or losses upon maturity.

If an Investor Buys a Bond and Holds It Until