Question: Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose
Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose today a 15 percent coupon bond sells at par. Two years from now, the required return on the same bond is 11 percent. What is the coupon rate on the bond now? The YTM? And how it will impact on the present values of bonds cashflows?
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