The rate of return an investor actually earns from owning a bond is called which one of the following?

Question

Quizplus · Accepted Answer

Realized yield is the actual rate of return earned by an investor from owning a bond, taking into account the bond's purchase price, coupon payments, and maturity value received at the end of the bond's term. The other options do not accurately represent the return earned by the investor. Market return refers to the overall performance of the market, not the return on a specific bond. Annualized coupon yield and maturity yield are measures of the interest rate paid by the bond, but do not take into account the investor's purchase price. Call yield refers to the return earned if the bond is called before maturity, which is a specific scenario and not the overall return earned by the investor.

The Rate of Return an Investor Actually Earns from Owning