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Homework answers / question archive / Economists consider the _____ to be the most accurate measure of interest rates
Economists consider the _____ to be the most accurate measure of interest rates.
A. simple interest rate.
B. current yield.
C. yield to maturity.
D. real interest rate.
The correct answer is Option C. Yield to Maturity.
In economists perspective, we are looking on the rate at which both parties are ready to give or take the funds in the open market and the yield to maturity rate is very much
applicable. In short, in economics, generally, what we mean with interest rate is yield to maturity rate.
