Q586
Rate of interest which is usually discussed by investors whenever rate of return is discussed is classified as
A.
yield to maturity
AnswerB.
yield to return
C.
yield to earning
D.
yield to investors
Answer: Option A
Solution
Answer: Option A
Solution:
Rate of interest which is usually discussed by investors whenever rate of return is discussed is classified 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.