Longer maturity bonds have high risk but low risk, while higher coupon bonds have a higher level of risk and a lower level of risk. To account for the effects related to both a bond's maturity and coupon, many analysts focus on a measure called, which is the weighted average of the time it takes to receive each of the bond's cash flows.?

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Kristopher

28 February, 19:35

Longer maturity bonds have high risk but low risk, while higher coupon bonds have a higher level of risk and a lower level of risk. To account for the effects related to both a bond's maturity and coupon, many analysts focus on a measure called, which is the weighted average of the time it takes to receive each of the bond's cash flows.?

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Roland Hatfield · Answer 1

Yield to Maturity

Explanation:

To account for the effects related to both a bond's maturity and coupon, many analysts focus on a measure called yield to maturity, which is the weighted average of the time it takes to receive each of the bond's cash flows.

A bond's yield to maturity can be defined as the value of returns an investor will make on a bond from the time of purchase to the time of maturity which includes all annual returns plus the difference between the price of the bond and its value at maturity.