Question: 10. What is the difference between the term structure of interest rates and the yield curve? Is the yield to maturity (YTM) on a bond

10. What is the difference between the term structure of interest

10. What is the difference between the term structure of interest rates and the yield curve? Is the yield to maturity (YTM) on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose today a 10% coupon bond sells at par. In 2 years from now, the required return on the same bond is 8%. What is the coupon rate on the bond then? What is the YTM? (10 marks)

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