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    Fundamentals of Corporate Finance Study Set 18
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    Exam 8: Bond Valuation and the Structure of Interest Rates
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    The Yield to Maturity of a Bond Is the Discount
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The Yield to Maturity of a Bond Is the Discount

Question 1

Question 1

True/False

The yield to maturity of a bond is the discount rate that makes the present value of the coupon and principal payments equal to the price of the bond.

Correct Answer:

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