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Stage 19 · Lesson 2 / 10
Coupon, Maturity, Yield, YTM
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Coupon, Maturity, Yield, YTM

Coach Chad, with a chart

Lesson 2: Four numbers describe every bond. They are easy once you separate what is fixed from what moves.

Same payout, lower price. Better deal?

A bond pays a fixed $40 a year. Its price drops from $1,000 to $900. For a new buyer, is that income better or worse per dollar?