The yield to maturity on a discount bond is

Correct Answer: equal to both the coupon rate / current yeild

Explanation:

Yield to maturity is a concept for fixed rate bonds and is the internal rate of return i.e. the rate at which future flows are discounted on a compound basis to give the present value of the bond including accrued interest.


Discussion & Comments

No comments yet. Be the first to comment!
Join Discussion