Question
Vidhi wants to invest in a bond. She analyses the yield to maturity of various bonds to identify the bond with the highest yield and invests in that. If the face value of all of the following bond is Rs.1000, in which bond would Vidhi invest?
Where, · C = Coupon payment · F = Face Value · P = Price · N = Years to maturity Here, the face value and the coupon payment of the bond are equal hence the bond having the least bond price will yield the highest YTM. More Alternate Sources of Finance Questions
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