Economists consider the ________ to be the most accurate measure of interest rates.
A)simple interest rate.
B)current yield.
C)yield to maturity.
D)nominal interest rate.

Question

Quizplus · Accepted Answer

Economists consider the yield to maturity to be the most accurate measure of interest rates as it takes into account the time value of money, compounding of interest, and the market price of the bond. The other options are either too simplistic (simple interest rate) or do not take into account the full picture (current yield only considers the current income and nominal interest rate does not account for inflation).

Economists Consider the ________ to Be the Most Accurate Measure