The yield to maturity is the single interest rate that equates the present value of a securitys
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The yield to maturity is the single interest rate that equates the present value of a security’s cash flows to its price. Bond values and yields are inversely related. For premium bonds, the coupon rate is greater than the current yield, which is greater than the yield to maturity. The order of these inequalities is reversed for discount bonds. P-8599
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ISE Investments
ISBN: 9781266085963
13th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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