Vladimir Putin calls Donald Trump to congratulate him. President-elect Donald Trump talked to Russian President Vladimir Putin on Monday. Trump was repeatedly attacked for praising the autocratic Putin during the election, particularly in light of allegations that Russia attempted to influence the campaign.
If you purchase a bond with a 6.0% coupon at par, its yield to maturity is 6.0%. If you pay more than par, the yield to maturity will be lower than the coupon rate. If purchased below par, the bond will have a yield to maturity higher than the coupon rate. When the price of a tax-exempt bond increases above its par value, it is said to be selling at a premium. When the security sells below par value, it is said to be selling at a discount. previous | next.
Municipal bonds are quoted on a yield to maturity basis, which in this example is a 5.25 basis. This means the bond has a yield-to-maturity of 5 1/4%. If the nominal yield (coupon rate) is 4 3/4%, this would mean that the bond would have to be selling at a discount, or below the par value ($1,000).If the yield to maturity is greater than the nominal yield (4 3/4%), the bond sells at a discount.hen a bond is purchased at its par value, the yield to maturity will be the same as the nominal yield or coupon rate. In this example, thecoupon rate is 8.25%. Therefore, the yield-to-maturity would also be 8.25%.