Respuesta :

Based on the relationship between the above mentioned measures, the following is true:

  • Price and yield to maturity are inversely related.
  • When YTM rises, the price of the bond falls.

What is Yield to Maturity?

  • It is the discount rate on the bond.
  • It shows the riskiness of the bond.

When the YTM is high, it means that the bond is more risky which leads to it having a lower price to compensate for the risk. The reverse is true.

Find out more on YTM at https://brainly.com/question/15172286.

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