A bond's yield to maturity takes into consideration:
A) current yield but not any price changes.
B) price changes but not the current yield.
C) both the current yield and any price changes.
D) neither the current yield nor any price changes.

Question

Quizplus · Accepted Answer

Yield to maturity takes into consideration both the current yield (which takes into account the bond's coupon payments as a percentage of its current price) and any price changes (which can occur if the market price of the bond differs from its face value).

A Bond's Yield to Maturity Takes into Consideration