The coupon interest rate and yield to maturity

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1. The Salem Company bond currently sells for $928.07, has a 6% coupon interest rate and a    $1,000 par value, pays interest semiannually, and has 12 years to maturity.

a. Calculate the yield of maturity (YTM) on this bond.

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

Reference no: EM131972738

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