The Dow Jones Corporate Bond Indexes is based A) the yield to maturity of bonds in the index. B) annual rates of return and assume the bonds were purchased one year ago and sold today. C) the interest rates offered on a sample of newly issued bonds. D) the closing prices of bonds in the index.

Question

Kimberly Schroeder

Business

22 July, 23:37

The Dow Jones Corporate Bond Indexes is based A) the yield to maturity of bonds in the index. B) annual rates of return and assume the bonds were purchased one year ago and sold today. C) the interest rates offered on a sample of newly issued bonds. D) the closing prices of bonds in the index.

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Answers (1)

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Cohen Bailey · Answer 1

D) the closing prices of bonds in the index.

Explanation:

The Dow Jones Corporate Bond Index is collection of 96 corporate bonds that are equally weighted. It measures the returns on corporate shares and pricing is done daily.

Investors study this index to get insights from trends noticed. These insights are used to make informed decisions on the best investment to make.

The Dow Jones Corporate Bond index displays daily closing balances of the 96 corporate bonds that make up the index. These closing balances are then compared to historical data.