Q611
Yield of interest rate which is below than coupon rate, this yield is classified as
A.
yield to maturity
B.
yield to call
AnswerC.
yield to earning
D.
yield to investors
Answer: Option B
Solution
Answer: Option B
Solution:
Yield of interest rate which is below than coupon rate, this yield is classified as yield to call. Yield to call (YTC) is a financial term that refers to the return a bondholder receives if the security is held until the call date, before the debt instrument reaches maturity.