What Is the Relationship Between a Bondholder's Rate of Return

question 99

Multiple Choice

What is the relationship between a bondholder's rate of return and the bond's yield to maturity if he does not hold the bond until it matures?

• A) The rate of return will be lower than the yield to maturity.
• B) The rate of return will be higher than the yield to maturity.
• C) The rate of return will equal the yield to maturity.
• D)There is no predetermined relationship between the rate of return and the yield to maturity.

---

Definitions:

Private Ownership

The legal right of individuals or entities to own property and assets, allowing for control and use as deemed fit by the owner.

Atomized Society

A social condition characterized by a lack of connection and solidarity among individuals, leading to isolation and fragmentation of relationships.

Surveillance Society

A society in which the monitoring and collection of data about individuals is pervasive, often by governments or corporations, for various purposes.

Laissez-Faire Society

A society where transactions between private parties are free from state intervention, including restrictive regulations, taxes, tariffs, and enforced monopolies.