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Yield to maturity---The bond shown in the following table pays interest annually.

Par value- $100

Coupon interest rate-5%

Years to maturity-6

Current value-$80

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.

P6-22 (similar to) Yield to maturity The bond shown in the following table pays interest annually(Click on the con located on the top-right come of the data table below in order to copy to contents into a spreadsheet) Par value Coupon interest rate Years to maturity Current value $100 5% $80 a. Calculate the yield to matunly (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. a. The yield to maturity (YTM) for the bond is % (Round to two decimal places.)