The yield that a bond will earn given that it is redeemed by the issuer at the earliest possible date is called the

Question

Quizplus · Accepted Answer

The yield to call is the yield that a bond will earn if it is redeemed by the issuer at the earliest possible date, as opposed to the yield to maturity, which assumes the bond is held until it matures. Therefore, option E is the best choice for this question. The coupon rate is the fixed interest rate paid to bondholders, the current yield is the annual return on the investment, and the realized yield is the actual yield earned by an investor during the holding period, which may include capital gains or losses.

The Yield That a Bond Will Earn Given That It