Investors consider which of the following to be the most important measure of bond returns?

Question

Quizplus · Accepted Answer

Yield to maturity reflects the total return an investor can expect to earn if they hold the bond until maturity. It takes into account the current market price of the bond, the coupon rate, and the time to maturity. Therefore, it is the most comprehensive measure of bond returns and is widely considered the most important by investors. The coupon rate and current yield are also important, but they do not capture the true total return of the bond.

Investors Consider Which of the Following to Be the Most