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Bond Yields are:_________ a. quoted as the average monthly rate of return and assume the bond is purchased today at the quoted price and held for twelve months. b. quoted as annual rates of return and
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Bond Yields are:_________

a. quoted as the average monthly rate of return and assume the bond is purchased today at the quoted price and held for twelve months.
b. quoted as annual rates of return and assume the bond is purchased today at the stated price and sold one year from today.
c. stated as a percentage of the maturity value and assume the bond is held to maturity.
d. stated as an annual rate of return and assume the bond is purchased today and held until maturity

User Colin Lamarre
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8 votes

Answer:

d. stated as an annual rate of return and assume the bond is purchased today and held until maturity

Step-by-step explanation:

Bonds are financial debt instruments that are sold to investors in exchange for the interest or yeild they will generate over time.

Yield to maturity is the total yield that a bond will have from point of sale till maturity.

The yield is stated as an annual rate of return. For example 7% per year.

Usually the longer the maturity period of bonds the higher the yield of the bond

User Abubakr Dar
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