EXPECTATIONS, PRICES, COUPONS AND YIELDS: COMMENT.

The article presents comments in response to the article "Expectations, Prices, Coupons and Yields," by A. Buse, originally appearing in the September 1970 issue of "Journal of Finance." The author amends a theorem appearing in the original article, making it applicable to any arbitrary pattern of expected rates of return. A general theorem is developed which relates the internal rate of return of a bond to an arbitrary pattern of expected rates over a specified period.