The ______ is a measure of the average rate of return an investor will earn if the investor buys the bond now and holds until maturity.
A) current yield
B) dividend yield
C) P/E ratio
D) yield to maturity
E) discount yield

Question

Quizplus · Accepted Answer

Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures. It considers all payments from the bond (coupon payments) and the difference between its current market price and its face value at maturity.

The ______ Is a Measure of the Average Rate of Return