Consider a bond with 10 coupon rate and ytm yield to


Consider a bond with 10% coupon rate and YTM (Yield To Maturity) of 8%.

If the bond’s YTM remains constant then in 1 year will the bond price be higher, lower or unchanged? Why?

Hint: is the bond selling at a premium, at par and at a discount?

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Financial Management: Consider a bond with 10 coupon rate and ytm yield to
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