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Yield to maturity The bond shown in the following table pays interest annually . Par value Coupon interest rate Years to maturity Current value $100

Yield to maturity

The bond shown in the following table pays interest annually.

Par value

Coupon interest rate

Years to maturity

Current value

$100

13%

19

$140

a. Calculate the yield to maturity (YTM) for the bond. The yield to maturity (YTM) for the bond is nothing % (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.

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