Each of following bonds pay interests annually: Bond Par value Coupon interest rate Years to...
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Each of following bonds pay interests annually: Bond Par value Coupon interest rate Years to maturity Current value A 9% 8 $1,000 1,000 500 B C 16 12 12 $ 820 1,000 560 12 a. Calculate the cost of the capital (Yield to Maturity) for each bond, please show your work with the calculator inputs or formula (Cost of long-term Debt). b. What relationship exists between the coupon interest rate and YTM, the Par value and the market value of a bond. Please explain the relationships in the abbve cases
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