The ________ is the yield an individual would receive if the individual purchased the bond today and held the bond to the end of its life.

Question

Quizplus · Accepted Answer

Yield to maturity is the yield an investor would receive if they held the bond until its maturity date, taking into account the current market price, coupon rate, and time remaining until maturity. Current yield, on the other hand, is simply the annual interest paid divided by the bond's current price. The prime rate is the interest rate banks charge their most creditworthy customers for short-term loans, and coupon rate is the fixed percentage of interest paid annually to bondholders.

The ________ Is the Yield an Individual Would Receive If