Explain the term Realized Yield
Explain the term Realized Yield? Also write some points on it.
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Realized Yield:• The realized yield is the return earned on a bond provided the cash flows really obtained by the investor.
• The interest rate at which the current value of the actual cash flows produced by the investment equals the bond’s price is the realized yield on the investment.
• The realized yield is significant bond computation since it permits investors to view the return they really earned on their investment.
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The substitution effect is negative since people react to a price raise by: (i) Reducing purchases of good. (ii) Generating more of good. (iii) Purchasing some substitute goods. (iv) Working less to sustain the existing purchasing patterns. Discover Q & A Leading Solution Library Avail More Than 1441359 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1946613 Asked 3,689 Active Tutors 1441359 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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