Asked by
Marco Berto
on Dec 02, 2024
Verified
The term "yield" relates only to investments whose holding period extends beyond one year, whereas "rate of return" typically relates to shorter-term investments.
Yield
The annual percentage of the investment cost that represents the income generated from an investment, like dividends or interest earnings.
Rate of Return
The increase or decrease in the value of an investment during a set time frame, shown as a percent of the investment's initial cost.
- Familiarize oneself with the principles governing bond valuation and the effects of market conditions on the valuation and yields of bonds.
Verified Answer
SH
Learning Objectives
- Familiarize oneself with the principles governing bond valuation and the effects of market conditions on the valuation and yields of bonds.