Asked by Divya Patel on Apr 25, 2024

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The rate of return required by investors in the market for owning a bond is called the:

A) Coupon.
B) Face value.
C) Maturity.
D) Yield to maturity.
E) Coupon rate.

Yield to Maturity

The overall anticipated gain on a bond if retained until its expiration date.

  • Understand the principle of yield to maturity and how to calculate it.
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Bongiwe Millicent7 days ago
Final Answer :
D
Explanation :
The rate of return required by investors in the market for owning a bond is referred to as the Yield to Maturity (YTM). This rate reflects the total return expected on a bond if it is held until its maturity date, including all coupon payments and the repayment of the bond's face value.