Bond Yields and Prices - UNF

For a zero coupon bond . YTM= (Par Value/Price)1/n -1. Investors earn the YTM if the bond is held to maturity, all coupons are reinvested at YTM, and rates do not change ... lower coupon interest rate. to bond issuer upon conversion- replace tax deductible interest with after-tax dividends. to shareholder - dilution/ lower stock price. ................
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