When forecasting a bond's overall rate of return for a holding period, the most uncertain element is the

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The yield change effect refers to the potential fluctuations in the bond's yield or interest rate during the holding period, which can significantly impact the overall rate of return. Interest on coupons, year of maturity, and time effect are all known or predictable factors that are less uncertain compared to yield changes.

When Forecasting a Bond's Overall Rate of Return for a Holding