Answered: main components of a bond’s yield

Business

Accounting

main components of a bond’s yield

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. What are the two main components of a bond’s yield and what do they represent?

Expert Solution

Concept of bond's yield

Bond's yield means the total rate of return available to the bond holders from the bond over a fixed time period.

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