What term refers to the rate of return a bondholder receives if the bond is held to maturity?

Yield to Maturity is the correct term for the rate of return a bondholder receives if the bond is held until it matures. This measure takes into account not only the bond's current market price and its coupon payments but also the total amount of interest that will be earned over the life of the bond until it reaches maturity.

This calculation assumes that the bond is held for its entire term and that all coupon payments are reinvested at the same rate as the yield to maturity. Therefore, it reflects the overall profitability of the bond investment, giving investors a comprehensive understanding of their potential returns.

Current Yield refers to the bond's annual coupon payment divided by its current market price, but does not account for the total returns if held to maturity. The Coupon Rate is the fixed percentage of the bond's face value that dictates its annual interest payments, while Effective Yield may refer to the yield accounting for compounding, but it is not specifically designated for bonds held to maturity. Hence, Yield to Maturity is the most accurate and inclusive measure for assessing the total return on a bond when held until its maturity date.