what relationship exists between the coupon interest rate and yield to maturity and the par value and market value of a bond? explain.

Homework: Module 5: Chapter 6 Save 8 of 10 (5 complete) HW Score: 48%, 19.2. core:0 of 4 pts 6-22 (similar to) Yield to maturity The bond shown in the following table pays interest annually. Question Help | (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Current value $480 Years to maturity Par value $500 Coupon interest rate 13% 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. b. What relationship exists between the coupon interest rate and yield to maturity and the par value and market value of a bond? Explain. (Select the best answer below.) O A. The market value of the bond approaches its par value as the time to maturity declines. The yield-to-maturity approaches the coupon interest rate as the time to maturity increases O B. The market value of the bond approaches its par value as the time to maturity declines. The yield-to-maturity approaches the coupon interest rate as the time to maturity declines O C. The market value of the bond approaches its par value as the time to maturity increases. The yield-to-maturity approaches the coupon interest rate as the time to maturity increases O D. The market value of the bond approaches its par value as the time to maturity increases. The yield-to-maturity approaches the coupon interest rate as the time to maturity declines