Question: Par value Coupon interest rate Years to maturity Current value $500 8% 20 $320 Yield to maturityThe bond shown in the following table pays interest

Par value	Coupon interest rate	Years to maturity	Current value
$500	8%	20	$320

Yield to maturityThe bond shown in the following table pays interest annually

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.

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