The markêt-required rate of return on a bond that is held for its entire life is called the: a. dirty yield. b. call premium. c. current yield. d. coupon rate.

The markêt-required rate of return on a bond that is held for its entire life is called the: **Answer: a. dirty yield.** Here's a brief explanation of the terms for clarity: - **Dirty Yield**: This is the yield on a bond that includes accrued interest. It reflects the total return an investor can expect if they hold the bond until maturity. - **Call Premium**: This refers to the amount above the face value that a bond issuer must pay to redeem a bond before its maturity date. - **Current Yield**: This is a measure of the income (interest or dividends) generated by an investment relative to its current market price, but it does not account for the total return over the life of the bond. - **Coupon Rate**: This is the interest rate that the bond issuer pays to bondholders, expressed as a percentage of the bond's face value. In this context, the dirty yield is the most appropriate term for the market-required rate of return on a bond held for its entire life.