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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.
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 4.3 percent coupon bond with annual coupon payments and a face value of $1,000. a. Assume the yield to maturity is 3.3 percent. b. Assume the yield to maturity is 5.3 percent. Complete this question by entering your answers in the tabs below. Required A Required B Assume the yield to maturity is 3.3 percent. (Do not round intermediate calculations. Enter "Bond price" answers to 2 decimal places and "Rate of return" rounded to 1 decimal place.) Bond price today $ 1,037.80 Bond price in one year $ 1,028.67 Rate of return 2.3 % Required A Required B >
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