Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2. Which one of the following statements is NOT true of realized yield? The realized yield is the return earned on a bond given the
2. Which one of the following statements is NOT true of realized yield?
The realized yield is the return earned on a bond given the cash flows actually received by the investor. |
The realized yield is equal to the yield to maturity even if the bond is sold prior to maturity. |
It is the interest rate at which the present value of the actual cash flows generated by the investment equals the bond's price at the time of sale of the bond. |
All of the above are true. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started