Can the principal and interest of yield-bearing assets be sold separately?
This is how I understand it: YT’s price reflects the market’s valuation of future yields. If the actual yield earned before maturity is lower than what the market expected when you bought it, YT holders lose money.
The discount on PT is equivalent to the fixed return you can earn by holding it to maturity. Annualized, this is the implied yield.
$PENDLE is the token of the yield-tokenization protocol Pendle. Its current price is 2.075.
This is how I understand it: YT’s price reflects the market’s valuation of future yields. If the actual yield earned before maturity is lower than what the market expected when you bought it, YT holders lose money.
The discount on PT is equivalent to the fixed return you can earn by holding it to maturity. Annualized, this is the implied yield.
$PENDLE is the token of the yield-tokenization protocol Pendle. Its current price is 2.075.