Question
YTM of a Bond is not affected
bySolution
The YTM or yield to maturity is unaffected by the issue price of a bond. YTM can be estimated as (Interest amount + (Redemption Value- Market Price)/N)/(average of redemption value and market price of bond). As such interest amount, coupon rate (that helps to calculate the interest amount) and redemption value would affect the YTM; however, issue price does not affect the YTM.
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