Calculate the yield to maturity for each bond

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Yield to maturity Each of the bonds shown in the following table pays interest annually.

Bond Par- value- Coupon -interest rate -Years to maturity -Current value

A $1,000- 9%- 8 -$ 820

B 1,000 -12 -16 -1,000

C 500 -12 -12 -560

D 1,000 -15- 10- 1,120

E 1,000- 5- 3- 900

a. Calculate the yield to maturity (YTM) for each 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: EM13874197

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