The ________ is a market derived interest rate used to discount the future cash flows of the bond.

Question

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Yield to maturity is the market-derived interest rate that reflects the present value of future cash flows of a bond, taking into account its current market price. It is therefore used to discount the future cash flows of the bond. The coupon rate is the fixed interest rate paid on the face value of the bond, while the semi-annual coupon rate refers to the coupon rate paid every six months. The compound rate is a general term that refers to the interest rate that is compounded over multiple periods, regardless of whether it is related to bonds or other financial instruments.

The ________ Is a Market Derived Interest Rate Used to Discount