Between the coupon interest rate and yield to maturity

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Reference no: EM131987244

Yield to maturity---The bond shown in the following table pays interest annually.

Par value- $100

Coupon interest rate-14%

Years to maturity-10

Current value-$110

a. Calculate the yield to maturity? (YTM?) for the bond.

b. What relationship exists between the coupon interest rate and yield to maturity and the par value and market value of a? bond? Explain.

Reference no: EM131987244

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