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True [87]
2 years ago
8

What is the definition of yield to maturity?

Mathematics
1 answer:
Alenkinab [10]2 years ago
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:
brainly.com/question/26376004

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Answer:

Step-by-step explanation:

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From the given figure two triangles ΔABC and ΔADE are similar and two lines BC║DE.

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