Assume there are two bonds from the same industry with the same risk and maturity (technically, the same duration). One is a discount bond and the other one is a premium bond. Which one is likely to have the higher coupon rate and YTM, and why?
Assume there are two bonds from the same industry with the same risk and maturity (technically, the same duration). One is a discount bond and the other one is a premium bond. Which one is likely to have the higher coupon rate and YTM, and why?