Explain why the coupon rate and the yield to maturity determine why the bonds would trade at a discount, premium, or par.

  • Explain the relationship observed between ratings and yield to maturity.
  • Explain why the coupon rate and the yield to maturity determine why the bonds would trade at a discount, premium, or par.
  • Based on the material you learn in this Phase, what would you expect to happen to the yield to maturity and market value of the bonds if the time to maturity was increased or decreased by 5 years?
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