A AAA rated bond's yield to maturity will be very close to it's expected yield.

Question

Quizplus · Accepted Answer

This statement is true. A bond with a AAA rating is considered to have a very low risk of default, so its yield to maturity (the rate of return an investor would receive if they held the bond until its maturity date) should be very close to its expected yield (the yield that would be calculated based on the bond's coupon rate and current market price).

A AAA Rated Bond's Yield to Maturity Will Be Very