Final answer:
The phrase "in whole" when evaluating bond investments is calculated on a level-yield basis, which takes into account all coupon payments and assumes they are reinvested at the bond's yield-to-maturity or yield-to-call.
The correct option is C.
Step-by-step explanation:
The concept you're asking about relates to bond investment and the phrase "in whole" typically applies to the method of analyzing bonds where both calls (the option for the issuer to repay the bond before its maturity) and sinking funds (money set aside by a corporation to repay bonds periodically) are taken into consideration. The correct answer to your question is: C. Level-yield basis.
When evaluating bonds "in whole," the investment is calculated on a level-yield basis, which assumes that the bond will be held to maturity, or to the earliest call date, and that all coupon payments are reinvested at the same rate as the bond's yield-to-maturity or yield-to-call. This method gives you a more comprehensive understanding of the potential investment returns, including all cash flows and potential early repayments.