Bond yields are typically stated as an annual rate of return, assuming the bond is purchased today and held until maturity. This reflects the yield to maturity (YTM), which is a common measure of a bond's return.

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Bond Yields Are

Question 5

Multiple Choice

Bond yields are

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

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