The horizon return is the bond return to be earned based on assumptions about reinvestment rates.

Name: The horizon return is the bond return to be earned based on assumptions about reinvestment rates.
Brand: Quizplus
Rating: 4.9 (36 reviews)

Question

Quizplus · Accepted Answer

The horizon return is indeed the bond return anticipated to be earned, taking into account assumptions about the rates at which interim cash flows (like coupon payments) will be reinvested until the bond's maturity or a specified future date.

The Horizon Return Is the Bond Return to Be Earned