The yield to maturity on a bond is the rate of return that equates the

QUESTION

The yield to maturity on a bond is the rate of return that equates the presentvalue of the bonds future cash ?ows with the bondsa. book value.b. liquidation value.c. face value.d. market value.
Answer D) Market Value The yield to maturity on a bond is the rate of return that equates the present value of the bonds future cash flows with the bonds market value .The yield to maturity on a bond is the rate of return that would have been earned by the investor if the

or held the bond until maturity which have been purchased by him at the current price.It shows the discount rate which equates the present value of future cash flows with its market value.

ANSWER:

CLICK REQUEST FOR  AN EXPERT SOLUTION