Bond A is a 10-year U.S. Treasury bond. Bond B is a 10-year corporate bond. True or
Question:
a. If you hold bond A to maturity, your return will be equal to the yield to maturity.
b. If you hold bond B to maturity, your return will be equal to or less than the yield to maturity.
c. If you hold bond A for 5 years and then sell it, your return could be greater than the yield to maturity.
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a True Ignoring reinvestment risk the promised yield on a treasury will mate...View the full answer
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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The yield to maturity (YTM) is the percentage rate of return for a bond assuming that the investor holds the asset until its maturity date. This video will give a complete tutorial on how to calculate Yield to Maturity on Microsoft Excel
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