Question

An investor buys a bond with a face value of ₹1,000, coupon of 8%, and market price ₹950. The bond matures in 5 years. What is the Yield to Maturity (YT

  • M trend and its implication?
A YTM < Coupon Rate → premium bond
B YTM = Coupon Rate → par bond
C YTM > Coupon Rate → discount bond
D YTM is zero since bond hasn't matured
E YTM is not applicable to fixed income
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