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If a bond's yield to maturity does not change, the return on the bond each year will be equal to the yield to maturity. Confirm
If a bond's yield to maturity does not change, the return on the bond each year will be equal to the yield to maturity. Confirm this for both a premium and a discount bond using a 4-year 3.7 percent coupon bond with annual coupon payments and a face value of $1,000.
Assume the yield to maturity is 4.7 percent.
1- bond price today?
2- bond price in one year?
3- rate of return?
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