What is the difference between a bond's promised yield and its realized yield? Which is more relevant?

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What is the difference between a bond's promised yield and its realized yield? Which is more relevant? When we calculate a bond's yield to maturity, which of these are we calculating?

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Fundamentals of Investments Valuation and Management

ISBN: 978-0077283292

5th edition

Authors: Bradford D. Jordan, Thomas W. Miller

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Question Posted: Sep 19, 2012 04:44 AM

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What is the difference between a bond's promised yield and its realized yield? Which is more relevant?

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A bonds promised yield is an indicator of what an investor can expect to ea...View the full answer

Fundamentals of Investments Valuation and Management

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