CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

The yield to maturity on a bond is ______.
A. below the coupon rate when the bond sells at a discount and above the coupon rate when the bond sells at a premium.
B. the interest rate that makes the present value of the payments equal to the bond price.
C. based on the assumption that all future payments received are reinvested at the coupon rate.
Explanation: It is the internal rate of return.

User Contributed Comments 7

User Comment
Shelton (A) is wrong
alexloke Really, Shelton? I didn't know. The answer obviosuly did say so...
Joel1980 'Obviosuly'? Nice - you taught him!
janis36 Surely you can't be serious.
ascruggs92 I am serious, and don't call me Shirley
Znanje35 Shurlee
Znanje35 Sure-LEE
You need to log in first to add your comment.