What Is the Difference Between the Yield-To-Maturity and the Realized

question 22

Multiple Choice

What is the difference between the Yield-to-Maturity and the Realized Compound Yield?

• A)They are actually the same concept.
• B)The yield to maturity is the actual return,calculated at the end of the investment; the realized compound yield is the expected return at the beginning of the investment.
• C)The realized compound yield is the actual return,calculated at the end of the investment; the yield to maturity is the expected return at the beginning of the investment.
• D)The yield to maturity continues as far as the first call,the realized compound yield continues until final payment is made.

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