Question
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 4.4 percent coupon bond with annual coupon payments and a face value of $1,000.
- Assume the yield to maturity is 3.4 percent.
- Assume the yield to maturity is 5.4 percent.
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Bond Markets Analysis And Strategies
Authors: Frank J.Fabozzi
7th Edition
0136078974, 978-0136078975
