Statements is true of a bonds yield to maturity

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Reference no: EM131022830

Which one of the following statements is true of a bond’s yield to maturity?

-The yield to maturity of a bond is the discount rate that makes the present value of the coupon and principal payments equal to the price of the bond.

-It is the annual yield that the investor earns if the bond is held to maturity, and all the coupon and principal payments are made as promised.

-A bond's yield to maturity changes daily as interest rates increase or decrease.

-All of the above are true.

Reference no: EM131022830

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