587FinanceMedium
If default probability is zero and bond is not called, then yield to maturity is_____________?
AMature expected return rate
BEqual to expected return rate
CLower than expected return rate
DHigher than expected return rate
Correct answer
B. Equal to expected return rate
Explanation
Equal to expected return rate is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.