Which of the following is not a component of a bond's required rate of return?
A) Risk premium
B) Real rate of return
C) Inflation premium
D) Maturity payment

Question

Quizplus · Accepted Answer

Maturity payment is not a component of a bond's required rate of return. The required rate of return includes the risk premium, the real rate of return, and the inflation premium. The maturity payment is the amount that the issuer will pay the bondholder upon maturity and is not a factor in calculating the required rate of return.

Which of the Following Is Not a Component of a Bond's