Please give me the correct complete answersas much as possib

Please give me the correct, complete answers,as much as possible the answer. Thank you.

Why is the bond\'s quoted yeild to maturity higher than the current yield?

Solution

This happens due to the time impact on returns. Yield to maturity indicates the total return of a bond converted to present value. This return includes the par value and the accumulated interest (compounded) till maturity.

While the current yield is simply determined by dividing the annual interest rate by the current market price, which doesn’t count for the total accumulated interest till the maturity. This is the reason, why Yield to maturity is higher than current yield.