The Rank Yield Measures Lowest to Highest is as follows:
Nominal; Current; Yield to Maturity; Yield to Call (since the discount is earned over time)
The exchange of bonds between investors is known as bond trading. By issuing a bond, a business guarantees investors interest payments in the amount promised for a predetermined time frame. Finding bonds with a gain in value is the key to mastering the art of bond trading.
Bonds are traded by investors for a variety of reasons, but the two most important ones are profit and safety. Bond trades that boost yield (trading up to a higher-yielding bond) or credit upgrades can be profitable for investors (bond price increases following an upgrade).
Bonds can be profitable for investors in two different ways. Direct bond purchases are made by private investors with the intention of holding them till maturity and profiting from the income they accrue. Additionally, they could invest in a bond mutual fund or bond ETF (ETF).
To learn more about bond trading refer to:
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