Financial economists consider the ________ to be the most accurate measure of interest rates.

Question

Quizplus · Accepted Answer

Yield to maturity takes into account the interest payments and the price of the bond at maturity, making it a more accurate representation of the actual interest rate being earned on a bond. The simple interest rate only takes into account the interest payments, while the discount rate is a rate used for present value calculations. The real interest rate adjusts for inflation, but it may not be the most accurate measure in all situations.

Financial Economists Consider the ________ to Be the Most Accurate