Register
Investors in the bond market require a return of 8.6 percent on a 10-year bond issued by Dell Industries. That means, they require to be able to earn on average 8.6 percent each year if they hold the bond
105k views
0 votes
Investors in the bond market require a return of 8.6 percent on a 10-year bond issued by Dell Industries. That means, they require to be able to earn on average 8.6 percent each year if they hold the bond until maturity. We call this 8.6 percent the bond's _______.

User LisaJ
by
5.5k points

1 Answer

2 votes

Answer:

Yield to Maturity

Step-by-step explanation:

Yield to maturity is the correct answer because the average annual yield that a person expects to earn is called the yield to maturity. Or it is the total return on the bond if a person holds the bond till its maturity. Since 8.6 percent is the average return so this is a yield to maturity.

User Emira
by
6.4k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

6.5m questions

8.7m answers

Other Questions

One reason that businesses want to combine with other businesses is to A. avoid taxes. B. delay expenses. C. hire more workers. D. reduce expenses.
Which of the following possesses the sole power to create revenue bills?
Which of the following is an example of a fixed expense? A.) Clothing B.) Rent C.) Food D.) Entertainment
A ______ is "the basic interpretive mechanism to let people know what an organization is doing and are sent out to editors and reporters in hopes of stimulating favorable stories about their organizations"
All of the following are fees typically charged by credit card companies EXCEPT: A. Late payment fee B. Balance Transfer fee C. Annual membership fee D. Reload fee
Link Copied!