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What rate of return takes into consideration appreciation or depreciation in market value relating to the par value of a debt security?
Suggested Answer: D
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a fundamental analyst. These analysts are guided by computations about a company's performance using data in annual reports.
46 comments · newest first
IS
Isaac
11 months ago
Nominal yield doesn’t account for market value changes.
LU
Luis
11 months ago
Wait, are we sure about that?
AL
Alva
12 months ago
Yield to maturity makes sense, right?
EL
Eleni
12 months ago
I thought it was current yield?
ST
Stanton
1 year ago
Definitely yield to maturity!
DE
Destiny
1 year ago
I thought nominal yield was just the stated interest rate, so it probably doesn't consider market value fluctuations.
KE
Kenny
1 year ago
I feel like I've seen a question like this before, and yield to maturity seems to fit because it accounts for the total return over the life of the bond.
JI
Jin
1 year ago
I'm not entirely sure, but I remember something about current yield only focusing on the income aspect, not the market value changes.
MO
Mozell
1 year ago
I think the answer might be yield to maturity since it considers both the coupon payments and any changes in market value.
RE
Reta
1 year ago
Yield to maturity, that's the one! It's the rate that gives you the total return on a bond, including capital gains or losses. I feel good about selecting that option.
PA
Paola
1 year ago
Wait, is it basis yield? I'm getting a bit confused between all these different yield calculations. I better review my notes before answering this one.
BR
Brandon
1 year ago
Okay, I remember learning about this in class. Yield to maturity is the rate that accounts for both the coupon payments and any changes in the bond's market price. I'm pretty confident that's the right answer here.
RE
Renea
1 year ago
Hmm, I'm not totally sure about this one. I know current yield and nominal yield don't consider market value changes, but I'm a bit fuzzy on the differences between yield to maturity and basis yield. I'll have to think this through carefully.
GI
Gilberto
1 year ago
This question seems straightforward - I think the answer is yield to maturity, since that takes into account changes in market value.
DA
Daniel
1 year ago
Okay, the key here is to focus on the CIMA definition of accountability. I think option D captures all the important aspects, so that's my best guess.
CR
Crissy
1 year ago
Okay, I've got this. The correct answer is option B - that's the proper syntax for declaring an external DTD file in the document type declaration. I'm confident in this one.
MO
Mollie
2 years ago
Yield to maturity, easy peasy. Although, what's the point of even owning bonds these days? Might as well just invest in cat memes.
TA
Talia
1 year ago
A) current yield
JE
Jesus
1 year ago
I agree, cat memes are the way to go!
DE
Deeann
1 year ago
B) yield to maturity
MO
Mona
1 year ago
Who needs bonds when you can have cat memes?
SI
Silva
1 year ago
D) basis yield
MA
Marsha
1 year ago
C) nominal yield
CU
Curt
1 year ago
A) current yield
EL
Elvis
1 year ago
I prefer yield to maturity too. Bonds are still a good way to diversify your portfolio.
DE
Dean
1 year ago
D) basis yield
PU
Pura
1 year ago
C) nominal yield
MO
Mona
1 year ago
B) yield to maturity
AU
Augustine
1 year ago
A) current yield
KR
Kristine
1 year ago
A) current yield
LO
Lourdes
1 year ago
B) yield to maturity
AR
Arthur
1 year ago
I prefer yield to maturity too. Bonds are still a good way to diversify your portfolio.
BR
Brande
1 year ago
D) basis yield
CI
Ciara
1 year ago
C) nominal yield
RO
Ronald
1 year ago
A) current yield
DE
Denae
1 year ago
B) yield to maturity
MA
Maira
2 years ago
A) current yield
KA
Kati
2 years ago
I'm not sure, but I think it could also be D) basis yield. It takes into account the difference between the purchase price and the par value.
YU
Yuriko
2 years ago
Ugh, I hate questions about bond yields. They're so confusing! But I'm pretty sure yield to maturity is the right answer here.
LO
Lorita
2 years ago
I agree with Silvana. Yield to maturity considers both interest payments and changes in market value.
JE
Jenelle
2 years ago
Yield to maturity, for sure. This is a classic question they love to ask on these exams.
SI
Silvana
2 years ago
I think the answer is B) yield to maturity.
GE
Gearldine
2 years ago
Hmm, this one's tricky. I think yield to maturity is the answer since it takes into account the changes in market value.
JE
Jennie
2 years ago
I'm not sure, but I think it might be A) current yield.
TA
Tashia
2 years ago
I agree with Bernardine, because yield to maturity factors in market value changes.
BE
Bernardine
2 years ago
I think the answer is B) yield to maturity.