Why Does the Yield-To-Maturity Differ from the Realized Holding Return

question 118

Essay

Why does the yield-to-maturity differ from the realized holding return for a bond?

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Definitions:

Supply Curve

A graphical representation that shows the relationship between the price of a good and the quantity of the good that suppliers are willing and able to produce and sell.

Total Variable Costs

The overall expense that changes in proportion to the level of output or production activity.

Output

The total amount of goods or services produced by a company, industry, or economy within a specific period.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply.