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If you were to calculate the yield on a security with a 10-year US Treasury security, the yield will be equal to?

1) The coupon rate
2) The current market price
3) The face value
4) The yield to maturity

1 Answer

5 votes

Final answer:

The yield on a 10-year US Treasury security is equal to the yield to maturity.

Step-by-step explanation:

The yield on a 10-year US Treasury security is equal to the yield to maturity, which is option 4. Yield to maturity is the total return an investor can expect to receive if the security is held until maturity.

To calculate the yield on a bond, you would need to consider factors such as the coupon rate, current market price, face value, and time to maturity.

In the case of a 10-year US Treasury security, the yield is determined by the prevailing interest rates in the economy and the price at which the security is bought or sold.

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