A bond's yield to maturity depends upon all of the following except:

Question

Quizplus · Accepted Answer

The yield to maturity is a measure of the average return of a bond over its life and is determined by factors such as the bond's coupon rate, maturity, and risk as reflected by the bond rating. However, it does not depend on the individual investor's required return as that is a personal decision made by the investor and not a characteristic of the bond itself.

A Bond's Yield to Maturity Depends Upon All of the Following