Question
The Salem Company bond currently sells for $1,285.42, has a coupon interest rate of 18% and a $1000 par value, pays interest annually , and
The Salem Company bond currently sells for $1,285.42, has a coupon interest rate of 18% and a $1000 par value, pays interest annually, and has 20 years to maturity.
a. Calculate the yield to maturity on this bond.
b. Explain the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value of a bond.
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Affordable Housing Finance
Authors: K. Hawtrey
2009th Edition
0230555187, 978-0230555181
