therearethreeimportantpointstonoteaboutratesofreturn▪ In calculating the rate of return,wewillusethepriceatthebeginningoftheyearto calculate the current yieldyouincuracapitalgainorlossonabondevenifyoudonotsell(realizedvs。unrealized)the bond at the end of the year▪ If you buy a coupon bond,yieldtomaturitymaynotbeagoodindicatorofreturnbecauseitdoesnotfactorincapitalgains
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