When we talk about the yield of a bond, we usually mean the yield to maturity of the bond. Why?
Answer to relevant QuestionsWhy are some bonds sold with a premium, some at par value, and some at a discount?What is the yield of the above bonds if interest (coupon) is paidannually?Les Company is about to issue a bond with semiannual coupon payments, a coupon rate of 10%, and par value of $1,000. The yield-to-maturity for this bond is 8%.a. What is the price of the bond if the bond matures in five, ...What is the yield to maturity of the August 2005 Treasury bond? Compare the yield to maturity and the current yield. How do you explain thisrelationship?Last year, The Harvest Time Corporation sold $40,000,000 worth of 7.5% coupon, 15-year maturity, $1000 par value, AA-rated; non-callable bonds to finance its business expansion. Currently, investors are demanding a yield of ...
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