Cashier Assistant Question: Download Questions PDF
Tell me what’s the difference between a yield and return rate on a bond?
Answer:
This question asks for the definition of the terms in relation to each other. A yield on a bond is all about the future; it measures the income earnings of an investment, but it ignores capital gains. The return rate is more about total past earnings and refers to what the investor has already earned over a certain period of time.
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