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Management · Q579

Financial Management

Graduate and Post Graduate · Management · question 579

Q579

Bond's promised rate of return is also considered as

A.
yield to earning
B.
yield to investors
C.
yield to maturity
Answer
D.
yield to return

Answer: Option C

Solution

Answer: Option C
Solution:
Bond's promised rate of return is also considered as yield to maturity. Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures. Yield to maturity is considered a long-term bond yield but it is expressed as an annual rate.