Economists consider the _____ to be the most accurate measure of interest rates

Economics Dec 18, 2020

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.

Expert Solution

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.

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