Which of the following does not influence a bond's yield to maturity?
A) Call risk
B) Interest rate risk
C) Firm's risk
D) Historic yields to maturity

Question

Quizplus · Accepted Answer

Historic yields to maturity do not influence a bond's current yield to maturity. The yield to maturity is determined by the bond's current price, its coupon payments, its face value, and the time remaining until maturity, not by its historical yields. Factors like call risk, interest rate risk, and the issuing firm's risk directly affect the bond's current price and, consequently, its yield to maturity.

Which of the Following Does Not Influence a Bond's Yield