|Author||Topic: general questions about bonds|
|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 canít 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)
|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.)
|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 shouldnít have been the case and that occured to me while I was reading FI. I am taking so much if time doing this. Donít know whether Iíll pass. I mean I have the whole of econ left and ethics is also there.
CFA Discussion Topic: general questions about bonds
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.