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LG 6 P6-22 Yield to maturity Each in the following table pays interest annually. of the bonds shown Bond Par value Current value Coupon interest

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LG 6 P6-22 Yield to maturity Each in the following table pays interest annually. of the bonds shown Bond Par value Current value Coupon interest rate Years to maturity 820 $1,000 9% 1,000 1,000 560 12 500 1,120 1,000 15 900 1,000 a. Calculate the yield to maturity (YTM) for each 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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