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What is the difference between the yield to maturity on a coupon bond and the rate of return? Part 2 A . There is no
What is the difference between the yield to maturity on a coupon bond and the rate of return?
Part
A
There is no fundamental difference between the yield to maturity and the rate of return.
B
Yield to maturity is the value of the coupon expressed as a percentage of the price of the bond. Rate of return is the return over a specific holding period that takes into account not just the coupon rate but the price change.
C
Yield to maturity is the return on a bond assuming the bondholder holds the bond for the full maturity. Rate of return is the return over a specific holding period that takes into account not just the coupon rate but the price change.
D
None of the above.
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