Asked by
laila ikram
on Nov 04, 2024
Verified
The ______ is a measure of the average rate of return an investor will earn if the investor buys the bond now and holds until maturity.
A) current yield
B) dividend yield
C) P/E ratio
D) yield to maturity
E) discount yield
Yield To Maturity
The total expected return on a bond if it is held until the maturity date, factoring in the bond's current market price, face value, interest payments, and time to maturity.
Current Yield
A financial metric that calculates the annual interest income from an investment as a percentage of its current market price.
Dividend Yield
A metric that indicates the annual dividend payment of a corporation as a proportion of its share price.
- Gain an understanding of the concept of yield to maturity (YTM) and why it matters.
Verified Answer
MS
Learning Objectives
- Gain an understanding of the concept of yield to maturity (YTM) and why it matters.