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 answer is none other than the "dirty yield," which represents the total return an investor can expect from holding a bond until maturity, taking into account both interest payments and any capital gains or losses. It's a term that can be a bit confusing, but it’s essential in understanding how bond returns work! Now, if you're diving into the world of bonds, remember to keep an eye on the coupon rate. This is the interest rate that the bond issuer promises to pay bondholders, typically expressed as a percentage of the bond's face value. Understanding the relationship between the coupon rate and the market-required rate helps savvy investors make informed decisions in the bond market!