The rate of return on a security is the:
A) interest rate that a security pays over its life.
B) interest rate that equates the current outflow to acquire the security with its current price.
C) capital gains rate that a security promises over its life.
D) interest rate that makes the present value of the security's expected cash flows equal to its price.
Correct Answer:
Verified
Q10: Which of the following is TRUE?
A)A bond's
Q11: Holding all other variables constant, as market
Q12: The term ''yield'' is synonymous with the
Q13: Which of the following risks do debt
Q14: If a 30-year, $1,000 bond has a
Q16: Which of the following is TRUE?
A)A bond's
Q17: A security's value is equal to:
A)the book
Q18: A bond with a face value of
Q19: As interest rates move up or down
Q20: Which of the following is used to
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