Busıness Fınance I Deneme Sınavı Sorusu #1240085

Which of the followings refers to the average rate of return that will be earned on a bond if it is bought at the market price and held until it matures?


Reinvestment rate risk.

Bond.

Yield-to-maturity.

Cash flow.

Interest rate risk.


Yanıt Açıklaması:

Yield-to-maturity is the average rate of return that will be earned on a bond if it is bought at the market price and held until it matures. It is the discount rate that makes the present value of its future cash flows equal to its market price. It is like an internal rate of return of a bond. Therefore, the correct option is C.

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