How to Calculate Coupon Rate from YTM: A Comprehensive Guide

How to Calculate Coupon Rate from YTM: A Comprehensive Guide

Calculating Coupon Rate from Yield-to-Maturity (YTM) defines the process of determining the fixed return rate on a bond investment, given its current market value and maturity date.

This calculation is crucial for investors seeking to maximize their returns. By understanding the relationship between coupon rate and YTM, they can make informed decisions about bond purchases and ensure optimal portfolio performance.

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