What is the relationship between the price of bond and ytm

Reference no: EM131922031

Question: Bond prices verus Yields

a) What is the relationship between the price of bond and its YTM?

b) Explain why some bonds sell at a premium over par value while other bonds sell at a discount. What do you know about the relationship between the coupon rate and the YTM for premium bonds? what about for the discount bonds? for bonds selling at par value?

Reference no: EM131922031

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