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YTM vs Coupon Rate - monies loaned which is expressed as a...

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A business and finance definition for yield to maturity rate is the interest earned by the lender on  monies   loaned   which   is   expressed   as   a   percentage   of   the   total   investment.   Yield   rate   is  determined by the amount returned to the lender of a security. The yield of a bond is influenced  by the price the buyer pays to purchase it. Intuitively, buyers prefer bonds that are sold at lower  prices because they have a higher yield. A higher coupon rate renders higher yield because the  bond will pay a higher percentage of its face value as interest each year. Aside from price and  coupon rate, yield rate is also affected by the number of years remaining till maturity, and the  difference between its face value and current price. Conversely, the coupon rate of a bond is the amount of interest paid annually, expressed as a  percentage of the face value of the bond. In some instances, it is also called ‘coupon yield.’ The 
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