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The rate of interest that, when applied to the expected future payments equal to the debt security's observed market price is called the:
Suggested Answer: A
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33 comments · newest first
LI
Lindsey
10 months ago
Nah, I think it's B, return on investment.
MA
Marjory
10 months ago
I thought it could be market interest too, but A makes sense.
SO
Sol
10 months ago
It's definitely A, yield to maturity!
KA
Karma
11 months ago
Wait, is it really just yield to maturity? Seems too simple.
GE
Gerardo
11 months ago
Totally agree, that's the right term.
IZ
Izetta
11 months ago
I thought Return on investment was more about overall profitability, so I’m leaning towards A as well. But I’m still second-guessing myself!
AR
Aracelis
11 months ago
I feel like I've seen a similar question before, and it was definitely about yield. A seems right, but I’m a bit confused about the other options.
NO
Noah
12 months ago
I'm not entirely sure, but I remember something about yield being related to market price. Could it be C, Market interest?
AN
Andrew
12 months ago
I think the answer is A, Yield to maturity. We discussed it in class as the rate that equates future cash flows to the current price.
RE
Rene
1 year ago
I'm a little confused by the wording of the question. I'll read it over again and try to break it down.
FR
Frederica
1 year ago
Yield to maturity, that's the one! I remember learning about that in class.
HA
Hannah
1 year ago
Okay, let me see... I think the key is understanding the concept of yield to maturity. I'll focus on that.
JO
Josefa
1 year ago
Hmm, I'm a bit unsure about this one. I'll need to think it through carefully.
TI
Tiffiny
1 year ago
This question seems straightforward, I'm pretty confident I know the answer.
JU
Justine
1 year ago
Actually, I believe it's A) Yield to maturity because it takes into account the future payments.
BE
Bea
1 year ago
I'm not sure, but I think it's B) Return on investment.
AN
Anabel
1 year ago
Yield to maturity, the only rate that matters when you're trying to time the market just right. *winks*
MI
Mindy
1 year ago
Interest earning? What is this, a savings account? Clearly, the answer is yield to maturity.
NO
Noel
1 year ago
Yield to maturity is correct. It's the rate that makes the present value of future payments equal to the market price.
AN
Andree
1 year ago
Return on investment? Really? That's just plain wrong. Do they even try on these questions?
RE
Rebecka
1 year ago
A) Yield to maturity
MO
Mozelle
1 year ago
I agree with Franchesca, Yield to maturity makes sense.
VE
Vernell
1 year ago
Yield to maturity, definitely. I can almost smell the right answer from here!
BR
Brett
1 year ago
Hmm, I'm pretty sure it's the market interest rate. That just makes the most sense to me.
AU
Audry
1 year ago
I believe it's the return on investment.
AU
Audry
1 year ago
I think it's actually the yield to maturity.
JU
Julian
1 year ago
Yield to maturity, of course! Anything else would just be a wild guess.
IV
Ivan
1 year ago
B) Return on investment
ER
Erick
1 year ago
Yes, it's the rate that makes the present value of future payments equal to the market price.
SH
Sherly
1 year ago
Definitely, yield to maturity is the correct answer.
TI
Tiffiny
1 year ago
Yield to maturity is the correct answer.
SK
Skye
1 year ago
A) Yield to maturity
FR
Franchesca
1 year ago
I think the answer is A) Yield to maturity.