Examlex

Solved

Why Should Many Investors Be Cautious When Relying on Yield

question 62

Essay

Why should many investors be cautious when relying on yield to maturity? Is it a convenient measure of rate of return for investors who might not hold their bonds to maturity?


Definitions:

Goodwill Impairment

An accounting charge that occurs when the book value of goodwill exceeds its fair market value, indicating the assets are worth less than their currently recorded value.

Fair Value

An estimation of the market value of an asset or liability, reflecting the amount for which it could be exchanged or settled between knowledgeable, willing parties.

Reporting Unit

A component of an organization for which discrete financial information is available and is reviewed regularly by the operations’ segment manager.

Related Questions