The rate of return that makes the present discounted value of a bond's future payment stream equal to its current market price is called the

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The rate of return that makes the present discounted value of a bond's future payment stream equal to its current market price is called the yield. This is also known as the bond's yield to maturity, which takes into account the bond's current market price, coupon rate, and time to maturity. The coupon rate is the fixed interest rate that the bond pays annually, while the par value and face value both refer to the amount that the bond will be worth at maturity. The residual maturity is the amount of time left until the bond reaches maturity. Therefore, the yield is the best choice for the given question.

The Rate of Return That Makes the Present Discounted Value