Which of the following best describes the yield to maturity of a bond? The actual amount of
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Question:
Which of the following best describes the yield to maturity of a bond?
The actual amount of interest income the investors earn on the bond each year based on its face value.
The amount the investor needs to pay to buy the bond from a trader.
The estimated overall rate of return that the investor will earn if they hold the bond until maturity.
The amount that the company must return to the investor when it matures.
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