Hi,
Is the Par Rate & YTM same ? Its confusing.
I hope the YTM is used to construct the Par curve?
Are these statements correct?
Thanks in Advance
Hi,
Is the Par Rate & YTM same ? Its confusing.
I hope the YTM is used to construct the Par curve?
Are these statements correct?
Thanks in Advance
Yes: the YTM is the par rate. A bond whose coupon rate is equal to its YTM will sell at par.