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The Yield to Maturity on a Bond Is the Rate

Question 3

Multiple Choice

The yield to maturity on a bond is the rate


A) computed as the annual interest divided by the bond's market price.
B) an investor earns if the bond is sold prior to the maturity date.
C) of annual interest initially offered when the bond was issued.
D) of return currently required by the market.
E) of annual interest paid on the bond.

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