YTM is the Internal Rate of Return (IRR) of the bond. It discounts all future coupon payments and principal repayment to the current market price of the bond.

Macaulay Duration is a measure of a bond's interest rate sensitivity. It represents the weighted average time to receive the bond's cash flows.

If the bond pays less interest (Coupon) than the market expects (YTM), its price must fall below face value to offer a competitive yield to the investor.

Since there are no interim coupon payments, the entire cash flow occurs at maturity. Thus, the weighted average time to receive cash flow is exactly the maturity period.

If the bond pays more interest than the market demands, investors will pay more than the face value to acquire it.

When interest rates rise, existing bonds with lower coupon rates become less attractive, so their price falls. Conversely, when rates fall, bond prices rise.

Current yield measures the return based on the current market price, ignoring capital gains/losses upon maturity.

A perpetual bond has no maturity. Its value is simply the annual interest divided by the yield (discount rate), based on the perpetuity formula.

Duration assumes a straight line relationship, which is inaccurate for large rate changes. Convexity measures the curvature, showing that bond prices rise more when rates fall than they drop when rates rise.

The P/E ratio indicates how much the market is willing to pay for every rupee of earnings generated by the company. A high P/E suggests high growth expectations.

Book Value represents the net worth attributable to equity shareholders based on the historical accounting figures, not market value.

Lower coupon bonds have higher Duration (more of their value comes from the distant principal repayment). Higher duration means higher price volatility when rates change.