The discount rate that makes the present value of a bond's payments equal to its price is termed the
Question
Solution 1
The discount rate that makes the present value of a bond's payments equal to its price is termed the Yield to Maturity (YTM).
Here's why:
The Yield to Maturity (YTM) is the total return anticipated on a bond if it is held until it matures. YTM is considered a long-term bond yield expressed as an a Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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