Is the yield to maturity on a bond the same thing as the required return? Is YTM

Question

Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate?
Suppose today a 10 percent coupon bond sells at par. Two years from now, the required return on the same bond is 8 percent. What is the coupon rate on the bond then? The YTM? Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate?
Suppose today a 10 percent coupon bond sells at par. Two years from now, the required return on the same bond is 8 percent. What is the coupon rate on the bond then? The YTM?

Explanation / Answer

The yield to maturity is the required rate of return on a bond expressed as a nominal annual interest rate.
For noncallable bonds, the yield to maturity and required rate of return are interchangeable terms. Unlike YTM and required return, the coupon rate is not a return used as the interest rate in bond cash low valuation, but is a fixed percetage of par over the life of the bond used to set the coupon payment amount.
For example given, the coupon rate on the bond is still 10 percent, and YTM is 8 percent.

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