Final answer:
Expected returns and yield to maturity are not equal because they measure different aspects of a bond's return.
Step-by-step explanation:
Expected returns and yield to maturity are not equal because they measure different aspects of a bond's return. Expected return is a forward-looking measurement that calculates the average return an investor can expect to earn on a bond based on various factors such as the bond's coupon rate, maturity period, and market conditions. On the other hand, yield to maturity is a backward-looking measurement that calculates the total return an investor will earn if they hold the bond until maturity, taking into account the bond's current market price, coupon rate, and time remaining until maturity. It considers the purchase price of the bond and any changes in market value.