Question: Par value Coupon interest rate Years to maturity Current value $100 7% 14 $70 a. Calculate the yield to maturity (YTM) for the bond. (2

Par value

Coupon interest rate

Years to maturity

Current value

$100

7%

14

$70

a. Calculate the yield to maturity

(YTM)

for the bond. (2 decimal places)

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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