1. 1. Interpreting bond yields [LO 7.1] Is the yield to maturity on a bond the same...
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1. 1.
Interpreting bond yields [LO 7.1] 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 10 per cent coupon bond sells at par.
Two years from now, the required return on the same bond is 8 per cent. What is the coupon rate on the bond then? The YTM?
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781743768051
8th Edition
Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan
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