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Sagot :
The right response is E, which stands for yield to maturity.
Yield To Maturity: What Is It?
Bonds with a high degree of investment quality are low-risk investments that generally produce a return that is marginally better than that of a standard savings account. These fixed-income assets are viewed as a safe source of retirement income by many investors. Any investor may include some bonds in their portfolio to reduce overall risk.
A bond's yield to maturity (YTM) gauges how much an investor will earn if they hold onto the bond until it matures. It shows the total of all outstanding coupon balances. The yield to maturity of a bond changes depending on the bond's market value and the number of remaining payments.
The coupon rate determines how much interest will be paid to the bond's owner each year. The fact that the coupon rate can also be referred to as the bond's yield only serves to complicate matters further.
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