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The Value of a Bond Can Be Calculated Several Different

Question 31

Multiple Choice

The value of a bond can be calculated several different ways, depending on the investor's objectives. Conservative, income- oriented bondholders will typically use


A) holding period return, whereas aggressive bond traders are likely to use realised yield.
B) promised yield, whereas aggressive bond traders are likely to use expected return.
C) realised yield, whereas aggressive bond traders are likely to use holding period return.
D) expected return, whereas aggressive bond traders are likely to use promised yield.

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