For a particular fixed-income security, the single interest rate that, if paid by a bank on the amount invested in the security, would enable the investor to obtain all the payments made by that security is referred to as the

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The yield-to-maturity (YTM) is the interest rate that makes the present value of all future cash flows from a fixed-income security equal to its current market price. This includes all interest payments and the repayment of the principal at maturity. It is a comprehensive measure of the total return earned on a bond if it is held until maturity, and is therefore the single interest rate that would enable the investor to obtain all the payments made by the security. A, B, and C are not as comprehensive measures of the total return earned on a bond.

For a Particular Fixed-Income Security, the Single Interest Rate That