True.
The statement is true. In an efficient and competitive credit market, the rate of return to bonds, such as government bonds or corporate bonds, should be near equal to the equilibrium interest rate. The equilibrium interest rate is determined by the supply and demand for credit in the market. It represents the rate at which borrowers are willing to borrow funds and lenders are willing to provide funds. Bond yields, which represent the rate of return on bonds, tend to align with the equilibrium interest rate to attract investors and ensure a fair return on investment.