Question

the yield to maturity:a.) that is expected will be realized any time a bond is sold.b.) will exceed the coupon tate when the bond is selling at a premiumc.) equals the current yield for all annual coupon bondsd.) can only be realized if a bond is purchased on the issue date at par valuee.) equals both the current yield and the coupon rate for par value bonds

Answer 1

Answer:

The correct answer is letter "D": can only be realized if a bond is purchased on the issue date at par valuee

Explanation:

The Yield to Maturity or YTM -also called book yield or redemption yield- is the anticipated return of a bond if the bond is held until maturity. YTM is expressed as an annual rate and it accounts for what all of the bonds' coupons future payments are worth today after present value.