If two bonds have the same yield to maturity,they also have the same current yield.

Question

Quizplus · Accepted Answer

Yield to maturity (YTM) and current yield are different measures. YTM considers the total return of the bond if held to maturity, including all payments and the difference between its purchase price and par value. Current yield only considers the annual interest payment relative to the bond's current price, not its maturity value or capital gains/losses. Thus, two bonds can have the same YTM but different current yields if their prices, coupon rates, or terms to maturity differ.

If Two Bonds Have the Same Yield to Maturity,they Also