The higher the yield to maturity on a bond, the closer to par the bond will trade.
Increasing the yield to maturity will increase the difference between the par value and the price that buyers are willing to pay for it.

Question

Quizplus · Accepted Answer

As the yield to maturity on a bond increases, the price of the bond will decrease because the bond becomes less valuable to potential buyers. Therefore, the bond will trade farther away from par.

The Higher the Yield to Maturity on a Bond, the Closer