Question: What is the difference between a bond's promised yield and its realized yield? Which is more relevant? When we calculate a bonds yield to maturity,

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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

6. Bond Yields What is difference between a bonds promised yield and its realized yield? Which is more relevant? When we calculate a bonds yield to maturity, which of these are we calculating?

Q:

1)What is interest rate risk? Which bond has greater interest rate risk, a 10-year zero-coupon Treasury STRIPS or a 10-year Treasury Note? 2)What is the difference between a bond's promised yield and...

Q:

1) What is interest rate risk? Which bond has greater interest rate risk, a 10-year zero-coupon Treasury STRIPS or a 10-year T-Note? 2) What is the difference between a bonds promised yield and its...

Q:

1)What is interest rate risk? Which bond has greater interest rate risk, a 10-year zero-coupon Treasury STRIPS or a 10-year Treasury Note? 2)What is the difference between a bond's promised yield and...

Q:

1)What is interest rate risk? Which bond has greater interest rate risk, a 10-year zero-coupon Treasury STRIPS or a 10-year Treasury Note? 2)What is the difference between a bond's promised yield and...

Q:

1)What is interest rate risk? Which bond has greater interest rate risk, a 10-year zero-coupon Treasury STRIPS or a 10-year Treasury Note? 2)What is the difference between a bond's promised yield and...

Q:

1)What is interest rate risk? Which bond has greater interest rate risk, a 10-year zero-coupon Treasury STRIPS or a 10-year Treasury Note? 2)What is the difference between a bond's promised yield and...

Q:

What is interest rate risk? What are the roles of a bonds coupon and maturity in determining its level of interest rate risk? What is the difference between a bonds promised yield and its realized...

Q:

6. Bond Yields (LO2, CFA4) What is the difference between a bonds promised yield and its realized yield? Which is more relevant? When we calculate a bonds yield to maturity, which of these are we...

Q:

Bond Yields (LO2, CFA4)What is the difference between a bonds promised yield and its realized yield? Which is more relevant? When we calculate a bonds yield to maturity, which of these are we...

Q:

Reversal preserves all of the basic set operations (and constants): (a) rev(-L)--rev(L), (b) rev(U{Li I}) = U{rev(L) | i (e) rev({Li I})={rev (L) |i 2. L L implies rev(L) Crev(L) 3. rev(L-L) - rev...

Q:

Why might those entering into contracts be worse off in the long run if the courts increasingly accept impossibility of performance as a defense? The doctrine of impossibility of performance is...

Q:

a . Describe the likely reasons for the differences in the accounts receivable turnovers for these two firms.

Q:

the special things about trees is that they protect themselves does a think