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Explain in detail, in terms of current yield, capital gain yields and YTM, why:  a) If YTM = coupon rate, bond price = par value?  b) If YTM > coupon rate, then bond price < par value?  c) IF YTM < coupon rate, then bond price > par value?  AND also give the name of the bond in each scenario.

Explain in detail, in terms of current yield, capital gain yields and YTM, why:  a) If YTM = coupon rate, bond price = par value?  b) If YTM > coupon rate, then bond price < par value?  c) IF YTM < coupon rate, then bond price > par value?  AND also give the name of the bond in each scenario.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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7. Explain in detail, in terms of current yield, capital gain yields and YTM, why: 
a) If YTM = coupon rate, bond price = par value? 
b) If YTM > coupon rate, then bond price < par value? 
c) IF YTM < coupon rate, then bond price > par value? 
AND also give the name of the bond in each scenario. 

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