The average rate of return earned on a bond if it is held until the first call date is the:

Question

Quizplus · Accepted Answer

The yield to call is the average rate of return earned on a bond if it is held until the first call date. This takes into account the call price and the time until the call date, and is a useful measure for investors who want to know the potential return on a bond assuming it is called by the issuer. The other options (yield to market, yield to principal price, yield to issue price, and yield to discount) are not relevant in this context.

The Average Rate of Return Earned on a Bond If