The yield to maturity for a one-year discount bond equals the increase in price over the year, divided by the initial price. the increase in price over the year, divided by the face value. the increase in price over the year, divided by the interest rate. none of the above.

Yield to maturity is expressed in percentage form, is a method of calculating the total return…

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The yield to maturity for a one-year discount bond equals

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 3Q: The rate of return on a bond held to its maturity date is called the bonds yield to maturity. If...

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Question

The yield to maturity for a one-year discount bond equals

		the increase in price over the year, divided by the initial price.
		the increase in price over the year, divided by the face value.
		the increase in price over the year, divided by the interest rate.
		none of the above.

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