Te yield to maturity on a bond is


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 discount rate that will set the present value of the future cash payments of interest and principal equal to the bond price.

c. based on the assumption that any payments received are reinvested at the coupon rate.

d. none of the above.

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Financial Management: Te yield to maturity on a bond is
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