medium · Debt Capital Markets pricing-yields-curve
If a bond is trading at 102.00 and its call price is 102.00, why might the YTW still be lower than the coupon rate?
- Because the bond is far more likely to be put back to the issuer by the holder before then.
- Because the broader bond market currently expects interest rates to rise.
- Because the YTM (which factors in a pull to par at 100.00) is lower than the coupon.
- Because the yield to the call date factors in the loss of the entire 2-point cash premium paid.
Sign up free to see the explanation and track your rank →
More Debt Capital Markets pricing-yields-curve practice
- For a bond with several call dates at different prices, the Yield to Worst is:
- If an investor buys a bond with a 5% coupon at a price of 102, how does the Yield to Matur
- What is the primary reason that the Yield to Maturity (YTM) of a premium bond is lower tha
- A bond's yield to maturity (YTM) is 7%, but its current yiel… — What does this suggest abo
- What is the most accurate description of its Yield to Maturity (YTM)?
- For a bond trading at a discount (below par), which yield measure is typically the same as
- If a bond's YTW is significantly lower than its YTM, the bond is likely trading at a:
- In a stable interest rate environment, which yield measure will fluctuate the most on a da