When bonds are fairly priced, for bonds with a maturity of 5 years, A bond with a coupon rate of 5% will yield higher than a bond with a coupon rate of 3%, when term-structure is upward sloping. Yield to maturity of a bond with zero-coupon will be the lowest, when the term structure is flat. Yield to maturity will be the same for bonds with different coupon rates, irrespective of the shape of the term structure. Yield to maturity of a zero coupon bond will be the highest, when term-structure is upward sloping. The purpose of separating accrued interest from the full price of a bond while producing a bond quotation is: Market tradition Underprice the bond Better assess bond price dynamics Make arbitrage profit