___________ is an annualized return rate on an investment using compound interest techniques.
A) Bond equivalent yield
B) Annual market yield
C) Average percentage yield
D) Effective annual yield
E) Compounded annual yield

Question

Quizplus · Accepted Answer

Effective annual yield calculates the annualized return rate taking into account the effects of compounding, and is, therefore, the best choice for the given question. Bond equivalent yield, annual market yield, and average percentage yield do not account for compounding, while compounded annual yield is not a commonly used term.

___________ Is an Annualized Return Rate on an Investment Using