What’s The Difference Between Coupon Rate And Yield To Maturity?

I think those two percents are for bonds, or a bill, i’m not sure

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One Comment

  1. Robert M
    Posted June 30, 2009 at 9:51 am | Permalink

    i believe you understand coupon rate, yield to maturity would include gain in principal. If you bought a bond below par say $850. the $150 is gain which is included in the yield to maturity calculation along with the coupon yield.
    Buying bonds to be held to maturity makes YTM the important parameter, just below credit quality that is.

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