The Return to Bondholders Is Guaranteed to Equal the Yield

question 84

True/False

The return to bondholders is guaranteed to equal the yield to maturity only if the bond is held until maturity.

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Definitions:

Balance of Trade Deficit

A situation where the value of a country's imports exceeds the value of its exports, resulting in a net outflow of domestic currency to foreign markets.

Balance of Payments Surplus

A situation where the total of a country's exports and incoming funds from other countries exceeds its imports and outgoing funds.

Imports

Goods and services purchased from other countries.

Exports

Goods or services sent from one country to another for sale or trade.