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Bond A. Explain the definition and the purpose of the yield to maturity measure. Give two reasons that yield to maturity will not be the

Bond

A. Explain the definition and the purpose of the yield to maturity measure. Give two reasons that yield to maturity will not be the same as the realized yield investors will receive. (10 marks)

B. Go to FT.com and under the MARKETS>MARKETS DATA>BONDS find the yield curve of the Eurozone. Present and discuss the shape of the current yield curve and compare it with the one week and month ago. Research and discuss the possible cause of the change of the yield curve with reference to the term structure theory. (23 marks)

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