The rate of return on a bond is equal to the dividend plus the change in the price of the bond as a percentage of the price.

Question

Quizplus · Accepted Answer

The rate of return on a bond is not equal to the dividend. Bonds typically do not pay a dividend, but rather pay interest. The rate of return on a bond is equal to the interest payments received plus any capital gains or losses on the bond as a percentage of the initial investment.

The Rate of Return on a Bond Is Equal to the Dividend