Yield to maturityThe Salem Company bond currently sells for

$1,039.31,

has a coupon interest rate of

11%

and a

$1000

par value, pays interest

annually,

and has

16

years to maturity.a. Calculate the yield to maturity

(YTM)

on this bond.

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.

Question content area bottom

Part 1

a. The yield to maturity on this bond is

enter your response here%.

(Round to three decimal places.)