A long-term investor would more likely be interested in a bond's current yield rather than its yield to maturity.

Question

Quizplus · Accepted Answer

A long-term investor would be more interested in a bond's yield to maturity as it takes into consideration the total return on the investment over the bond's entire life, including the reinvestment of interest payments. The current yield only reflects the bond's annual interest payment as a percentage of its current market price and does not consider the bond's term or potential for price appreciation.

A Long-Term Investor Would More Likely Be Interested in a Bond's