Question $27$

$8\mathrm{.}53$ pts

The difference between the coupon interest rate on a fixed$-$rate bond and the yield to maturity for a bond is: $q,-$

The coupon interest rate for a bond is actually the Nime thing as the yield to maturity for a bond.

the coupon interest rate for a bond is the legally$-$defined unchanging contractual interest rate for a bond and determines what the annual dollar interest payment is for a bond; the vield to maturity for a bond is the current makket rate of return required by prospective irvestors in the bond and can change frequently over time.

the coupon interest rate for a bond is the legally$-$defined maximum irvestment return permitted for a bond; the vield to maturity is an imestor's required return for a bond that pays no cash interest payments $($i$.$e$.$ a zero coupon bond$).$

the coupon interest rate for a bond is the legaliv$-$defined unchanging contractual interest rate for a bond: the yield to maturity for a bond defines what is the fixed$-$dollar annual interest payment for a bond.