Subject - Business Ethics:

Corporate Finance

MCQ - 57-2162

Question:

Which of the following is an expected rate of return on a bond if bought at its current market price and held to maturity?

Yield to maturity
Current yield
Coupon yield
Current yield

Correct Answer: A

Explanation:

The yield to maturity (YTM), is the discount rate which returns the market price of the bond. It is thus the internal rate of return of an investment in the bond made at the observed price. YTM can also be used to price a bond, where it is used as the required return on the bond.

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80 MCQ for effective preparation of the test of Corporate Finance of Business Ethics section.

Read the MCQ statement: Which of the following is an expected rate of return on a bond if bought at its current market price and held to maturity? , keenly and apply the method you have learn through the video lessons for Corporate Finance to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 57-2162.

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Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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