Question 1

Question 2

a. Calculate the youd to matirty (YTM) for the bond. b. What relationthip exista between the cocipon interest rate and yield to maturily and the par value and markot vilue of a bond? Explain. a. The yield s matirity PTMy for the bond is 14. (Round to two decimal places.) b. What retationahip exists between the coupon interest rale and yieid to makurty and the par value and market vatue of a bond? Explan. (Select the best ansaer below) 7. The maker vaiue of the bond approaches is par value as the time to maturity increases. The yoli-1o-maturty approaches the coupon interest rate as the tme to maharity incrans. e. The market value of the bond approaches as par value as the dime to maturity declines. The yiels-to-maturity approaches the coupon interest rate as the time to maturify inceases. c. The ruirket vilun of the bond approachos ite par value as the time to maturity increases. The yels-to-maturity approaches the coupon interest rate as the ime bo matirity iftelines: 0. The market value of the bond approaches is par value as the time to maturity doclines, The yield-to-mafurify appreaches the coupon intorest rate as the time to matirity decinnt. on similar-risk bonts is 14% annual interest (7\% paid semiannually) The present valie of the bond is 3 (Round to the nearest cent.)