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- Topic: general questions about bonds
| Author | Topic: general questions about bonds |
|---|---|
| muff @2014-10-02 06:58:17 |
Can we have the following two bonds similar in most of the characteristics in the market at the same time? Bond 1: Coupon 8%, YTM 8%. Bond 2: Coupon 9%, YTM 9% According to me, they can’t be present because market rates at a point in time are fixed. So, YTM has to be same on bonds with diffr coupon rates. (Assume suitable data wherever necessary) |
| ryantwilson @2014-10-04 05:15:06 |
Only if bond #2 is riskier in some respect. (In practice questions for the CFA exams, this sort of thing shows up often. Not in the real world, however.) |
| muff @2014-10-05 13:22:31 |
Yea, I do understand that there will be a difference in YTM if there is some kind of risk. I mean there has to be, but for instruments of same risk class, it shouldn’t have been the case and that occured to me while I was reading FI. I am taking so much if time doing this. Don’t know whether I’ll pass. I mean I have the whole of econ left and ethics is also there. Anyway thanks |
