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bearhunter [10]
2 years ago
5

The market-required rate of return on a bond that is held for its entire life is called the: Multiple Choice yield to maturity.

coupon rate. current yield. call premium. dirty yield.
Business
1 answer:
Scorpion4ik [409]2 years ago
6 0

Answer:

yield to maturity

Explanation:

Yield to maturity is the required rate of return of an investor in the market to hold the bond or other security until the maturity date of the bond.

A coupon carries two types of interest rate

  1. Coupon rate
  2. Yield to maturity rate

Coupon rate is the interest rate which is stated on the face value of the security. The interest payment on the security is made on this rate.

As mentioned above the Yield to maturity rate is the required rate of return of an investor in the market to invest in these bonds.

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