Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / The yield-to-maturity (yield) of a bond is its return if you purchase it in the secondary market and hold it until it matures

The yield-to-maturity (yield) of a bond is its return if you purchase it in the secondary market and hold it until it matures

Finance

The yield-to-maturity (yield) of a bond is its return if you purchase it in the secondary market and hold it until it matures. So for example, if you bought a bond for $100 and its yield to maturity is 5%, then when the bond matures you get $105 back. Let’s pretend we have two bonds. Bond A has a yield-to-maturity of 9% while Bond B has a yield-to-maturity of 2%. What are some reasons why Bond B’s yield is lower than Bond A? Hint: it has to do with types of risk.

Option 1

Low Cost Option
Download this past answer in few clicks

2.86 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE