In Considering the Holding Period Return, the Longer the Term

question 124

Multiple Choice

In considering the holding period return, the longer the term of the bond the:

• A) less important is the capital gain and the more important in the current yield.
• B) less important is the coupon rate and the more important is the current yield.
• C) less important is the capital gain.
• D) more important is the capital gain.

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