Bus 405 week 3 dq 2 bond prices versus yields

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Week 3 – DQ2 - Bond Prices versus Yields - BUS405 Principles of Investments Complete Concept Question 9 of Chapter 10: (a) What is the relationship between the price of a bond and its YTM? (b) Explain why some bonds sell at a premium to par value, and 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 discount bonds? For bonds selling at par value? (c) What is the relationship between the current yield and YTM for premium bonds? For discount bonds? For bonds selling at par value? Remember to complete all parts of the questions, and report the results of your analysis. Respond to at least two of your classmates’ postings outside of your own thread.

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