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Calculate the yield to maturity for the bond

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Reference no: EM132837970

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

Par value

Coupon interest rate

Years to maturity

Current value

$500

13%

17

$460

Required -

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: EM132837970

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