Yield to maturity The Salem Company bont comundy for $7.07.06. boscoepen interest rate and a 51000 para a interest and luns 15 years to maturity a. Calculate the yield to muy (TM) stond 1. Explain the routinho seen the corporate and yield te mututy and the per valor and market value of a bond a the paid to matury i bon sunt to the decimal powe) . Explan the relationship to contin baten the comportate and yield te mature and serves and mast vel abend Select the best answer below) O The market value of the hond posters para as the time to match they may approaches the coupon interesses the time to matury rose O Theme the chess the time to mully decine The yold towy pproaches the couples that matches Other of the bond Approaches to personality The yield to reaches the coupon were the time to my des OD. The market weet te band chess pares the story is They may proches the couponses theme to matury incess Yield to maturity The Salem Company bond currently sells for $717.86, has a coupon interest rate of 8% and a $1000 par value, pays interest annually, and has 15 vears to maturity. a. The yield to maturity on this bond is % (Round to three decimal places.) b. Explain the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value of a bond (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. OB. 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 OC. 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. OD. The market value of the bond approaches its par value as the time to maturity declines. The yield to maturity approaches the mounon interest rate as the time to maturiring