Question
WHAT IS THE ANSWER ? The Salem company bond currently sells for $955, has a 12% coupon interest rate and a $1,000 par value, pays
WHAT IS THE ANSWER ?
The Salem company bond currently sells for $955, has a 12% coupon interest rate and a $1,000 par value, pays interest annually, and has 15 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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Fundamentals Of Financial Management
Authors: Richard Bulliet, Eugene F Brigham, Brigham/ Houston
11th Edition
1111795207, 9781111795207
