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The Rate Which Equates the Purchase Price of a Security

Question 41

Multiple Choice

The rate which equates the purchase price of a security with the present value of all its expected annual net cash inflows is the:


A) Yield to maturity
B) Annual percentage rate (APR)
C) Add-on interest rate
D) Coupon rate
E) Simple interest rate
F) Current yield
G) Holding-period yield
H) Discount rate

Correct Answer:

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