easy · Debt Capital Markets pricing-yields-curve
An investor sees a bond with a 4% coupon trading at a price of 80.
What is the most accurate description of its Yield to Maturity (YTM)?
- The YTM is lower than 4%.
- The YTM is exactly 5%.
- The YTM is equal to 4%.
- The YTM is greater than 5%.
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