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Which of the following is most likely a correct statement? I. The yield to maturity will be always equal to the realized return. II. If

Which of the following is most likely a correct statement?

I. The yield to maturity will be always equal to the realized return.

II. If the coupon reinvestment rate is greater than the yield to maturity, the realized return will be higher than the yield to maturity.

III. The yield to maturity represents the realized return under one condition: only if the bond is held to maturity.

None of the above

II

III

I

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