The yield to maturity is normally equal to the coupon rate.

Question

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The yield to maturity (YTM) represents the total return anticipated on a bond if held until it matures. It takes into account the current market price of the bond, its face value, and the time remaining until maturity. The coupon rate, on the other hand, is the fixed percentage of the bond’s face value paid to the bondholder as interest periodically. Therefore, the yield to maturity and coupon rate are not necessarily equal and can be different depending on various factors.

The Yield to Maturity Is Normally Equal to the Coupon