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In: Finance

Yield to maturity    The bond shown in the following table pays interest annually.   ​(Click on the...

Yield to maturity   

The

bond shown in the following table pays interest

annually.

  ​(Click on the icon located on the​ top-right corner of the data table below in order to copy its contents into a​ spreadsheet.)

Par value

Coupon interest rate

Years to maturity

Current value

​$100100

1313​%

1818

​$8080

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.

a. The yield to maturity

​ (YTM​)

for the bond is

nothing​%.

​ (Round to two decimal​ places.)

Solutions

Expert Solution

jeff jeffy answered 2 years ago
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