Which of the following is not one of the components that makes up the required rate of return on a bond?
A) Risk premium
B) Real rate of return
C) Inflation premium
D) Maturity payment

Question

Quizplus · Accepted Answer

The components that make up the required rate of return on a bond are the risk premium, real rate of return, and inflation premium. The maturity payment is the payment made by the bond issuer to the bond holder at the end of the maturity period, and it is not a component of the required rate of return.

Which of the Following Is Not One of the Components