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Answer :
The yield to maturity would decrease if the price of the bond rises. Yield to maturity (YTM) is the total return anticipated on a bond if held until its maturity date. It considers the bond's current market price, face value, coupon rate, and time to maturity.
When the price of a bond rises, it means that the bond is selling at a premium, i.e., above its face value. As the bond's price increases, the yield to maturity decreases because the bondholder is paying more for the bond in relation to the future cash flows (coupon payments and face value) it will generate.
To achieve the same total return as before, the coupon payments become a smaller percentage of the bond's price. Consequently, the yield to maturity decreases to align with the lower effective yield based on the increased price.
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