Question
Yield to Maturity Each of the bonds shown below pays interest annually . Bond Par Value Coupon Years to Maturity Current Value A $1000 12%
Yield to Maturity
Each of the bonds shown below pays interest annually.
| Bond | Par Value | Coupon | Years to Maturity | Current Value |
| A | $1000 | 12% | 15 | $850 |
| B | $500 | 10% | 10 | $560 |
| C | $1000 | 13% | 10 | $1200 |
| D | $1000 | 8% | 4 | $900 |
- Calculate the yield to maturity (YTM) for each bond.
- What relationship exists between the coupon rate and yield to maturity and the par value and market value of a bond? Explain.
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The Legaltech Book
Authors: Susanne Chishti ,Sophia Adams Bhatti ,Akber Datoo ,Drago Indjic
1st Edition
1119574277, 978-1119574279
