What measures the expected rate of return of a bond assuming that you sell it prior to its maturity?
A) Yield to maturity
B) Current yield
C) Realized yield
D) Coupon rate
E) None of the above

Question

Quizplus · Accepted Answer

Realized yield measures the expected rate of return of a bond assuming that it is sold before its maturity. This calculation takes into account the bond's current market price, its coupon payments, and any capital gain or loss realized upon the sale of the bond.

What Measures the Expected Rate of Return of a Bond