The Promised Yield Is the Return Earned on a Bond

question 44

True/False

The promised yield is the return earned on a bond given the cash flows actually received by the investor and assuming that the coupon payments are reinvested at that promised rate.

Understand the concept of geometric average rate of return and how to calculate it.

Understand and calculate the excess return on risk-free securities.

Calculate arithmetic return on investments.

Calculate and understand the concept of real rate of return.

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