The appropriate discount rate for bonds is called the yield to maturity.

Name: The appropriate discount rate for bonds is called the yield to maturity.
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The yield to maturity represents the total return anticipated on a bond if it is held until it matures, and this includes both the annual interest payments and any capital gains or losses. It is the appropriate discount rate for bonds because it factors in the time value of money and the bond's current market price.

The Appropriate Discount Rate for Bonds Is Called the Yield