Anonymous
Anonymous asked in Business & FinanceOther - Business & Finance · 1 month ago

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 :(

1 Answer

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  • Don G
    Lv 7
    1 month ago
    Best 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.

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