Question: Answer all the questions BOND CONCEPTS A) Connection between Coupon rate , Yield to maturity and bond Prices: Understand this Coupon rate - Yield to

Answer all the questions Answer all the questions BOND CONCEPTS A) Connection between Coupon rate

BOND CONCEPTS A) Connection between Coupon rate , Yield to maturity and bond Prices: Understand this Coupon rate - Yield to maturity : Bond Price $1000 Yield to maturity greater than Coupon rate : Price of the bond will be than $1000 Yield to maturity less than Coupon rate : Price of the bond will be than $1000 Coupon rate higher than Yield to maturity: Price of the bond will bethan $1000 Coupon rate lower than Yield to maturity: Price of the bond will be than $1000 Price of the bond is less than $1000; So, the Yield to maturity of the bond must be than Coupon Price of the bond is More than $1000; So, the Yield to maturity of bond must bethan Coupon rate

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