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A generic tag to understand the calculations in a specific case. Please give out a sample illustration and ask a specific question. Ideally should also be accompanied by specific subject tags like "credit-cards", "savings-account", "index-funds" etc.
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Why is that we discount all the coupons and par amount of a bond at the same rate?
Why is that we discount all the coupons and par amount of a bond at the same rate, our YTM?
If we think of each coupon/par as a strip/single bond on its own, wouldn't then each coupon payment be disc …