Final answer:
A forecast of bond returns based on the yield curve prediction at the end of an investment period is known as horizon analysis. It considers various factors including compensation for delaying consumption, adjustments for inflation, and a risk premium. Therefore, the correct option is D.
Step-by-step explanation:
A forecast of bond returns based largely on a prediction of the yield curve at the end of the investment horizon is called a horizon analysis. When an investor purchases a bond, they anticipate a rate of return, which varies based on the issuer's credit risk. The interest rate obtained on bonds can be dissected into three elements: compensation for delaying consumption, an adjustment for inflationary rises in price levels, and a risk premium which accounts for the borrower's level of risk.