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The yield to maturity on a bond is: Select one: a. Coupon rate divided by the Market price b. Annual interest divided by Face

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Answer #1
in a highly efficient market yield to maturity rate is equal to the market rate
the market is adjusted due to the current yield of a bond and its redeemed value.
so option d is correct.
option a is incorrect as coupon rate divided by market price gives the current yield
option b is incorrect as annual interest divided by face value provide the coupon value
option c is incorrect as current yield is not equal to the yield to maturity
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