For an investor who plans to purchase a bond maturing in one year, the primary consideration should be

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When an investor plans to purchase a bond maturing in one year, the primary consideration should be the yield to maturity (YTM) because it will indicate the return that the investor will receive on the investment, taking into account both the coupon rate and any changes in the price of the bond over time. By contrast, the coupon rate is only one part of the equation, representing the interest payments made on the bond each year, and it does not necessarily reflect the full return the investor will receive. Interest rate risk and changes in the risk of the issue may also be factors to consider, but they are secondary to the YTM, which provides a more comprehensive view of the investment's potential return.

For an Investor Who Plans to Purchase a Bond Maturing