Currently,the bond market requires a return of 11.6 percent on the 10-year bonds issued by Winston Industries.The 11.6 percent is referred to as which one of the following?

Name: Currently,the bond market requires a return of 11.6 percent on the 10-year bonds issued by Winston Industries.The 11.6 percent is referred to as which one of the following?
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Question

Quizplus · Accepted Answer

The 11.6 percent is the yield to maturity, which is the total return anticipated on a bond if the bond is held until it matures.

Currently,the Bond Market Requires a Return of 11