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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