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2 years ago

What is the definition of yield to maturity?

1 answer:

8 0

The yield to maturity best defined by the option c. The overall return the investor makes if they purchase a bond today and hold to maturity.

<h3>What is yield to maturity?</h3>

It is the total return of rate that will have been incomed by a bond when it makes all liability payments and repays the principal amount.

Since, as per the definition of yield to maturity, investor would get the original price of bond plus and the rate of interest that finalized (at the time of bond purchase) when the maturity period will over.

Thus, the overall return the investor makes if they purchase a bond today and hold to maturity. Best describes yield to maturity.

Learn more about yield to maturity here:
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Brine is a solution of salt and water. If a tub contains 50 gallons of a 5% solution of brine, how much water must evaporate to

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<span><span>Let x = amt of water evaporated

.05(50) = .08(50-x)
2.5 = 4 - .08x
.08x = 4 - 2.5
.08x = 1.5
x =
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Check; amt of salt remains the same, only the percentage is different, right?
.05(50) = .08(50-18.75)
.05(50) = .08(31.25)
2.5 = 2.5</span><span>
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