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Question
What is meant by "Yield to Maturity"?a) The coupon interest rate paid each year, divided by the face value of the bond.
b) The coupon interest rate paid each, divided by the current price of the bond.
c) The periodic interest rate that equates the current price with the expected future flows.
d) The periodic interest rate that equates the current price with the expected future flows, up to the time of the first call.
Answer
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