alleryStart learning →The yield to maturity of a bond is the rate that does what?
ADiscounts promised flows to price
BMultiplies coupon by par value
CDivides coupon by clean price
DSets accrued interest to zero
Answer & Solution
Correct answer: A. Discounts promised flows to price
YTM is the single rate at which all promised coupons and principal discount exactly to the observed price.
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