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The Salem company bond currently sells for $955, has a 12% coupon interest rate and a $1,000 par value, pays interest annually, and has 15 years to maturity.

a. find out the yield to maturity (YTM) on this bond.

b. describe the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value of a bond.

Basic Finance, Finance

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