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

Question

Quizplus · Accepted Answer

Yield to maturity takes into account the total return an investor will receive, including interest payments and any capital gains or losses, over the entire life of a bond. It is considered more accurate than simple interest rate or current yield, which only measure the interest payments made during a specific period of time. Real interest rate, while important, measures the interest rate adjusted for inflation and is not necessarily more accurate than yield to maturity for measuring overall return on an investment.

Economists Consider the ________ to Be the Most Accurate Measure