The quoted interest rate, which is the rate received if the issuer does not default and the investor is paid off on time is best described as:
A) yield-to-call.
B) discount yield.
C) promised yield.
D) bond equivalent yield.

Question

Quizplus · Accepted Answer

The promised yield is the quoted interest rate that assumes the issuer will not default and the investor will be paid off on time. It reflects the return the investor expects to receive under these conditions.

The Quoted Interest Rate, Which Is the Rate Received If