Which of the following is not one of the components included in the required rate of return on a bond?
A)Risk premium
B)Real rate of return
C)Inflation premium
D)Maturity payment

Question

Quizplus · Accepted Answer

The required rate of return on a bond includes the risk premium (to compensate for the risk of default), the real rate of return (to compensate for the time value of money), and the inflation premium (to compensate for future inflation). The maturity payment, or the payment of the bond at the end of its life, is not considered a component of the required rate of return.

Which of the Following Is Not One of the Components