There are some old bonds here in Hungary that currently sells at 111% of face value and after taxes they have 5,1% coupon yield.
They have 3 years left. If I keep it till maturity, the YTM is only 0,7%.
So my plan is I to buy it hold it for 2 years, then I sell it in the last year.
My question is how does the price of bonds change that are about to expire? Do they generally converge to 100%?