A bond's internal rate of return is also know as it's
A) Coupon
B) Payback period
C) Duration
D) Yield to maturity

Question

Quizplus · Accepted Answer

The internal rate of return for a bond is commonly referred to as its yield to maturity. This is the rate at which the present value of the bond's future cash flows equals its current price. It incorporates both the bond's coupon payments and any capital gains or losses resulting from changes in market interest rates. The other options listed are not synonymous with a bond's internal rate of return.

A Bond's Internal Rate of Return Is Also Know as It's