The rate of return required by investors in the market for owning a bond is called the:

Question

Quizplus · Accepted Answer

The rate of return required by investors in the market for owning a bond is known as the yield to maturity. It factors in the initial investment price, coupon rate, time to maturity, and face value to calculate the total return on the bond. Therefore, option D is the correct answer. The other options do not represent the required rate of return by investors but rather different aspects of bond investments such as the interest rate payments (coupon) or the principal amount (face value).

The Rate of Return Required by Investors in the Market