The Salem Company bond currently sells for $669.84, has a coupon interest rate of 6% and a $1000 par value, pays interest annually, and has 13 years to maturity.

a. Calculate the yield to maturity (YTM) 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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Part 1

a. The yield to maturity on this bond is _____% (Round to three decimal places.)