The yield to maturity is equal to
A)the interest rate at which the present value of an asset's returns is equal to its value today.
B)the face value or par value of a coupon bond.
C)any payments received from an asset at the date the asset matures.
D)interest rate on the asset minus any taxes owed on the interest received.

Question

Quizplus · Accepted Answer

The yield to maturity represents the interest rate at which the present value of all future cash flows from an asset, such as a bond, is equal to its current market price. In other words, it is the rate of return that an investor can expect to earn by holding the bond until maturity and receiving all its coupon payments and principal repayment.

The Yield to Maturity Is Equal to