Select ALL the correct statements about bond yield. We use the current yield to calculate the return if the bond is call
Posted: Wed Apr 06, 2022 9:13 am
Select ALL the correct statements about bond yield.
We use the current yield to calculate the return if the bond is
called before maturity
The yield to maturity of a bond is the amount that the company
must return to the investor when it matures
The yield of a bond may include interest payments, capital gain,
and income from reinvesting the coupons
The nominal yield is not always an accurate measure of the
current purchasing power of the interest in a year's time
We use the current yield to calculate the return if the bond is
called before maturity
The yield to maturity of a bond is the amount that the company
must return to the investor when it matures
The yield of a bond may include interest payments, capital gain,
and income from reinvesting the coupons
The nominal yield is not always an accurate measure of the
current purchasing power of the interest in a year's time