Question: Par value Coupon interest rate Years to maturity Current value $1,000 14% 9 $950 a. Calculate the yield to maturity ( YTM ) for the

Par value

Coupon interest rate

Years to maturity

Current value

$1,000

14%

$950

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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