Solved

What Is the Difference Between the Yield-To-Maturity (YTM)and the Realized

Question 1

Multiple Choice
What is the difference between the yield-to-maturity (YTM)and the realized compound yield (RCY)?

What is the difference between the yield-to-maturity (YTM) and the realized compound yield (RCY) ?


A) They are actually the same concept.
B) The YTM is the actual return,whereas,the RCY is the expected return at the beginning of the investment.
C) The RCY is the actual return,whereas,the YTM is the expected return at the beginning of the investment.
D) The YTM considers only coupon payments,whereas,the RCY includes all the bond's cash flows.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents