mature expected return rate
lower than expected return rate
higher than expected return rate
equal to expected return rate
✅ The correct answer is D.
If default probability is zero and bond is not called then yield to maturity is equal to expected return rate. The return on an investment as estimated by an asset pricing model. It is calculated by taking the average of the probability distribution of all possible returns.
If default probability is zero and bond is not called then yield to maturity is equal to expected return rate. The return on an investment as estimated by an asset pricing model. It is calculated by taking the average of the probability distribution of all possible returns.