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?

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Definitions:

Record Selector Button

A graphical control element that allows users to select records, typically seen in database applications or spreadsheets.

Column Heading

The label or title at the top of a column that describes the type of data that column contains, often found in spreadsheets and tables.

Record Deletion Button

A feature in database and some applications which allows users to remove specific records or entries with a single click.

Field

A specific piece of data; a component of a database record that represents one piece of information within the record.