What is the relationship between a bondholder's rate of return and the bond's yield to maturity...
What is the relationship between a bondholder's rate of return and the bond's yield to maturity if he does not hold
the bond until it matures?
|
A. |
The rate of return will be lower than the yield to maturity. |
|
B. |
The rate of return will be higher than the yield to maturity. |
|
C. |
The rate of return will equal the yield to maturity. |
|
D. |
It could be higher or lower. |
Homework Answers
Option D is correct
It could be higher or lower
Yield can be higher or lower if the bond is sold before maturity of the bond.
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What is the relationship between a bondholder's rate of return
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