Kizspy Question: 3
(Choose 1 answer)
Which one of the following statements is NOT true of realized yield?
A. The realized yield is the return earned on a bond given the cash flows actually received by the investor.
B. The realized yield is equal to the yield to maturity even if the bond is sold prior to maturity.
C. It is the interest rate at which the present value of the actual cash flows generated by the investment equals
the bond's price at the time of sale of the bond.
D. The realized yield allows investors to see the return they actually earned on their investment.
