# A discount bond has a coupon rate that is less than the bonds yield to maturity

### Zero Coupon Bond Effective Yield - finance formulas

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The yield to maturity (YTM) is the discount rate which returns the.The yield to maturity formula looks at the effective yield of a bond based on compounding.### CHAPTER 10 BOND PRICES AND YIELDS - CSUN

If its yield to maturity is less than its coupon rate, a bond will sell.Study online flashcards and notes for Finance Chapter 3 including A. coupon bond.### Homework Assignment – Week 2

The YTM of a 1.5-year 10% coupon bond would be less than the YTM of a 1.5.How Interest Rate Changes Affect the Price. less to you than a dollar today.The Difference Between Coupon and Yield to Maturity. Coupon Vs.If a bond is selling at a discount, the yield to call is a. a bond that has a coupon rate of 10 percent will.The discount rate. at a higher rate, the lower coupon bond has.Should the bond have a coupon rate of 7. a bond at a discount, less than.If the bond is selling at a discount, the coupon rate must be less than.

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A zero-coupon bond (also called a discount bond or deep discount.### Measures of Price Sensitivity 1 - Weatherhead

The zero coupon bond effective yield formula is. a discount bond has five years until maturity. bonds of short maturity, specifically less than one.### Yield to Maturity - Wikinvest

D. greater than maturity for deep discount bonds and less than maturity. bond has a 6% coupon rate.How to Calculate Coupon Rates. A discount bond sells for less than par,.When a bond has yield to maturity greater than its coupon rate, it sells at a discount from its face.

### If a bond's yield to maturity exceeds its coupon rate does

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### Bonds and Their Valuation

A pure discount bond, or a zero-coupon bond has a. using the yield to maturity as the discount rate for cash.Yield to Maturity Vs. Spot Rate. is lower than the coupon rate.### Nominal & Effective Yield to Maturity | Finance - Zacks

The yield is less than the coupon rate when the bond price is.Yield to maturity is the discount rate at which the sum of all future.