How do a bond's coupon rate, yield to maturity, face value and the years to maturity relates?
I've been trying to wrap my head around these concepts but I seemed to get to nowhere. Please help me :(
- Don GLv 71 month agoBest Answer
How do they relate? Bonds pay interest on their Face Value at their Coupon Rate, usually semi annually or annually. Yield to Maturity depends on its Present Value, which is based on the current market interest rate.