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The yield to maturity for a bond is: the interest rate on the bond, relative to...

The yield to maturity for a bond is:

the interest rate on the bond, relative to its face value, when it is issued.

the discount rate that makes the present value of the coupon and principal payments equal to the price of the bond.

calculated by dividing face value of the bond by market value.

calculated by dividing market value of the bond by its face value.
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