13. Why is that the yield to maturity for the same bond differs depending on how long it is until the bond maturity? Explain this in words, rather

1. What are the two main components of a bond’s yield and what do they represent?

Bond prices and bond yields are negatively related. Explain why

A bond’s expected return is sometimes estimated by its YTM and sometimes by its YTC. Underwhat conditions would the YTM provide a better estimate, and when would the YTC be better?

Why does the required rate of return for a particular bond change over time?

Which of the following statements is/are most CORRECT? O 11 A yield curve depicts the relationship between bond's 'time to maturity and its yield to maturity. 2) A premium bond's price will decline over time if the required return remains unchanged. 3) A discount bond's price will decline over time if the required return remains unchanged. 4) Both a and b are correct.

yield to maturity implies a bond price. a. lower; lower b. higher; lower c. higher; higher d. None of the above A.

Is a higher or lower yield to maturity desired by bondholders? Why?

Is the price of a long term bond or the price of a short term security more sensitive to a change in interest rates? Why?

1. What is the relationship between interest rate level and bond price? Why must this relationship be true? How has the current rate environment impacted the prices of bonds?