The correct answer is: C. required rate of return.
The required rate of return is the minimum rate of return that an investor expects to earn on an investment. It is used to calculate the present value of future cash flows and to determine the fair value of an investment.
The required rate of return is determined by a number of factors, including the risk of the investment, the time horizon of the investment, and the investor’s risk tolerance.
The required rate of return is an important concept in finance and is used in a variety of applications, such as investment valuation, capital budgeting, and portfolio management.
A. required rate of redemption is not a correct answer because it is not the interest rate that is used in calculation of cash flows of bonds. The required rate of redemption is the interest rate that is used to calculate the amount that must be paid back to the bondholders when the bond matures.
B. required rate of earning is not a correct answer because it is not the interest rate that is used in calculation of cash flows of bonds. The required rate of earning is the interest rate that is used to calculate the amount of profit that a company expects to earn on an investment.
D. required option is not a correct answer because it is not a term that is used in finance.