Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question

How does a bond’s current yield differ from its total return?

Expert Solution
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Step 1: Introduction

A bond is a debt financial instrument issued by governments or corporations to raise capital from the investors. The bond provides a return to the investors at a fixed rate. The return in the form of interest to bondholders is the yield that is given periodically.

 

 

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