A bond selling at par will have a yield to maturity equal to its current yield.

Question

Quizplus · Accepted Answer

When a bond is selling at par, the current yield is equal to the coupon rate divided by the price of the bond. The yield to maturity is the discount rate that equates the present value of all future cash flows (including the coupon payments and the principal repayment at maturity) to the bond's current market price. If the bond is selling at par, the yield to maturity will be equal to the coupon rate, which is also the current yield.

A Bond Selling at Par Will Have a Yield to Maturity