The yield to maturity takes into account:
A) The coupon income.
B) Any cash dividends.
C) Any capital gains or losses.
D) a and c only.
E) All of the above.

Question

Quizplus · Accepted Answer

The yield to maturity (YTM) considers both the coupon income (the periodic interest payments) and any capital gains or losses (the difference between the purchase price and the maturity value of the bond). Cash dividends are not relevant to bond investments, as they are typically associated with stocks.

The Yield to Maturity Takes into Account