The correct answer is: C. yield.
Yield is the return on an investment expressed as a percentage of the investment’s value. It is calculated by dividing the annual income from the investment by the investment’s value.
Capital gain is the increase in the value of an asset over time. It is realized when the asset is sold.
Interest rate is the amount of interest paid on a loan or investment, expressed as a percentage of the loan or investment amount.
Unrealized gain is the increase in the value of an asset that has not yet been sold.
Here is a table that summarizes the differences between the four terms:
| Term | Definition |
|—|—|
| Yield | The return on an investment expressed as a percentage of the investment’s value. It is calculated by dividing the annual income from the investment by the investment’s value. |
| Capital gain | The increase in the value of an asset over time. It is realized when the asset is sold. |
| Interest rate | The amount of interest paid on a loan or investment, expressed as a percentage of the loan or investment amount. |
| Unrealized gain | The increase in the value of an asset that has not yet been sold. |