SIE - Securities Industry Essentials Exam

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Which of the following BEST describes YTC in fixed income?

The return on investment for a bond holder if it is held until the maturity date
A
The return on investment for a bond holder if it is held until the call date
B
The return on investment for a bond holder if it is held for 180 days after crossing par value
C
The return on investment for a bond holder if it is held until maturity; but only if it is bought at a deep discount with no coupons
D

Explanations

( B ) describes YTC - yield to call. ( A ) is YTM and ( D ) is referring to a zero coupon bond.

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