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.$)$

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.

a$.$ The yield to maturity $($YTM$)$ for the bond is $\%.($Round to two decimal places.$)$

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.$)$

A$.$ 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.

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.

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 declines.

D$.$ 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.