Coupon rate vs. YTM
#bonds #finance #yield-to-maturity
- If a bond's coupon rate is less than its YTM, then the bond is selling at a discount.
- If a bond's coupon rate is more than its YTM, then the bond is selling at a premium.
- If a bond's coupon rate is equal to its YTM, then the bond is selling at par.
If you want to change selection, open document below and click on "Move attachment"
Yield to maturity - Wikipedia, the free encyclopedia usually quoted without making any allowance for tax paid by the investor on the return, and is then known as "gross redemption yield". It also does not make any allowance for the dealing costs incurred by the purchaser (or seller).
<span>Coupon rate vs. YTM[edit]
If a bond's coupon rate is less than its YTM, then the bond is selling at a discount.If a bond's coupon rate is more than its YTM, then the bond is selling at a premium.If a bond's coupon rate is equal to its YTM, then the bond is selling at par.
Variants of yield to maturity[edit]
As some bonds have different characteristics, there are some variants of YTM:
Yield to call: when a bond is callable (can be repurchased by the issuer Summary
| status | not read | | reprioritisations | |
|---|
| last reprioritisation on | | | suggested re-reading day | |
|---|
| started reading on | | | finished reading on | |
|---|
Details