In a world of certainty, all investments must provide equal total returns for any investment period. Short-term

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In a world of certainty, all investments must provide equal total returns for any investment period.

Short-term holding-period returns on all bonds would be equal in a risk-free economy; all returns would be equal to the rate available on short-term bonds. Similarly, total returns from rolling over short-term bonds over longer periods would equal the total return available from long-maturity bonds. P-639

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ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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