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Busıness Fınance I Deneme Sınavı Sorusu #1240086
Busıness Fınance I Deneme Sınavı Sorusu #1240086
In terms of yield-to-maturity, which of the followings refers to the return you get from the change in the value of bond?
Capital gains yield. |
Maturity. |
Dividends. |
Face value. |
Current yield. |
Yanıt Açıklaması:
Yield-to-maturity has two components. The first one is the return you get from coupon payments, called current yield (annual coupon/current bond price). The second one is the return you get from the change in the value of bond, called capital gains yield. Therefore, the correct option is A.
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