Bonds are priced to offer an effective yield to investors. Since fixed income securites are sold in par value amounts, the pricing of these bonds will effect the overall yield an investor gets.
Although you may receive a high coupon rate paid to par (nominal rate), if a premium was paid, your overall yield to maturity will be lower than the coupon rate. This is normal, as the coupon cannot be changed, but interest rates do change. The only think the market or a bond trader can do is re-price these bonds to current interest rate levels. That adjustment will be reflected in the current and yield to maturity.
Although you may receive a high coupon rate paid to par (nominal rate), if a premium was paid, your overall yield to maturity will be lower than the coupon rate. This is normal, as the coupon cannot be changed, but interest rates do change. The only think the market or a bond trader can do is re-price these bonds to current interest rate levels. That adjustment will be reflected in the current and yield to maturity.
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