Yield to maturity The bond shown in the following table pays interest annually. (Click on the icon here & in order to copy the contents of the data table below into a spreadsheet.)

Par value

$500

Coupon interest rate

14%

Years to maturity

19

Current value

$720

1. Calculate the yield to maturity (YTM for the bond
2. What relationship exists between the coupon interest rate and yield to maturity and the par value and market value of a bond? Explain.