Question: Two bonds are identical, except one has a yield to maturity of 4 % while the other has a yield to maturity of 1 3
Two bonds are identical, except one has a yield to maturity of while the other has a yield to maturity of If the bonds don't default and if interest rates remain the same, you could earn higher returns with the bond
The yield to maturity of a long term bond is very difficult to calculate by hand, the only practical way to compute it is with a calculator
If you pay less for a bond, the yield to maturity of the bond increases Yield to maturity is defined as the ratio between the coupon payment divided by the price of the bond
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