Which of the following factors determine the yield on a bond? More than one answer may be correct. Multiple select question. Expected future inflation Real rate of return Lack of liquidity Interest rate risk Dividend premium Tax status Voting rights Default risk

Which of the following factors determine the yield on a bond? More than one answer may be correct. Multiple select question. Expected future inflation Real rate of return Lack of liquidity Interest rate risk Dividend premium Tax status Voting rights Default risk

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 9MC

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Question

Which of the following factors determine the yield on a bond? More than one answer may be correct.

Multiple select question.

Expected future inflation

Real rate of return

Lack of liquidity

Interest rate risk

Dividend premium

Tax status

Voting rights

Default risk

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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