Question: a ) What is the difference between the coupon and the yield to maturity of a bond? b ) Why would the coupon exceed the
a What is the difference between the coupon and the yield to maturity of a bond?
b Why would the coupon exceed the yield and vice versa?
c Why is the yield on a y US Tbond higher than on a y German Government Bond known as a Bund
A year Treasury bond is issued with a par value of $ paying a coupon of or $ per year. If interest rates increase after the Tbond is issued, what happens to the bonds a coupon rate? b price? c yield to maturity?
If a bond with par value of $ and a coupon of is selling at a price of $ is the bonds yield to maturity more or less than
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