What is yield to maturity, and how it affects the price of the bond?
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Yield to maturity is also known as Market yield i.e how much return market are expecting or hoping to be
yield to maturity or market return is how much the bond ACTUALLY returns to you…
if the bond is issued at premium it is actually yielding less bcz you have paid more to buy it
and if it is issued at discount it yields more bcz apart from coupon you have bought it for a lower price.