Yield to maturity   The Salem Company bond currently sells for ​$1,120.30​,has a coupon interest rate of 16​%and a...
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Yield to maturity   The SalemCompany bond currently sells for
​$1,120.30​,has a coupon interest rate of 16​%and a $1000 par​value,pays interest annually​,and has 17
years to maturity.  
a. Calculate the yield to maturity ​(YTM​)on this bond.
b. Explain the relationship that exists between the couponinterest rate and yield to maturity and the par value and marketvalue of a bond.
Yield to maturity   The SalemCompany bond currently sells for
​$1,120.30​,has a coupon interest rate of 16​%and a $1000 par​value,pays interest annually​,and has 17
years to maturity.  
a. Calculate the yield to maturity ​(YTM​)on this bond.
b. Explain the relationship that exists between the couponinterest rate and yield to maturity and the par value and marketvalue of a bond.
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