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Sticky Note
The expected rate of return on a bond if it is held until maturity is called:
اگر بانڈ کو اس کی میعاد پوری ہونے تک رکھا جائے تو متوقع شرحِ منافع کو کیا کہتے ہیں؟
  1. Coupon Rate
  2. Yield to Maturity
  3. Dividend Yield
  4. Discount Rate
Explanation
  • The expected rate of return on a bond if it is held until maturity is called the yield to maturity (YTM).
  • It represents the internal rate of return for
    • The investment,
    • Combining all coupon payments,
    • The current market price,
    • The final face value payout upon maturity.

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