If a Bond Is Sold Before Maturity, Under What Circumstance

question 1

Essay

If a bond is sold before maturity, under what circumstance would the rate of return equal the yield when the bond was purchased?

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Definitions:

Physical Devices

Tangible pieces of hardware that are used for specific functions, often within technological or manufacturing settings.

Inventory Turnover

The relationship between the volume of goods sold and inventory, computed by dividing the cost of goods sold by the average inventory.

Purchase Order

An official document issued by a buyer committing to pay the seller for the supply of specific products or services at agreed prices.

Approved Vendor

A supplier that has been vetted and authorized by a company to provide goods or services.