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11 November, 06:41

The bond market requires a return of 9.8 percent on the 5-year bonds issued by JW Industries. The 9.8 percent is referred to as the: Multiple Choice call rate. yield to maturity. face rate. coupon rate. current yield.

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  1. 11 November, 06:53
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    Answer: Yield to maturity

    Explanation:

    The yield to maturity (YTM) also known as the redemption yield or book yield of a bond is the overall interest that is gotten by an investor who purchases the bond at the market price, and holds the bond until it matures.

    Yield to maturity is the rate at which the addition of all future amount gotten from a bond equals to the bond's current price. It is usually given in terms of Yearly Percentage Rate.
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