The rate of return is equal to
A) the coupon rate plus the rate of capital gains.
B) the coupon rate plus the current yield.
C) the current yield plus the rate of capital gains.
D) the coupon rate multiplied by the rate of capital gains.

Question

Quizplus · Accepted Answer

The rate of return on a bond or any investment is typically calculated by combining the income it generates (such as interest payments, which could be analogous to the current yield in the context of bonds) and the capital gains (or losses) it experiences over a period. This combination provides a comprehensive view of the investment's performance.

The Rate of Return Is Equal to