How does the yield to maturity on a bond differ from the


1. Describe the relationship between the coupon rate and the required rate of return that will result in a bond selling at
a. A discount
b. Par value
c. A premium

2. How does the yield to maturity on a bond differ from the coupon yield or current yield?

3. Under what conditions will a bond's current yield be equal to its yield to maturity?

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Finance Basics: How does the yield to maturity on a bond differ from the
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