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Yield to maturity   The Salem Company bond currently sells for ​$1,120.30​,has a coupon interest rate of 16​%and a...

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Finance

Yield to maturity   The SalemCompany bond currently sells for

​$1,120.30​,has a coupon interest rate of 16​%and a $1000 par​value,pays interest annually​,and has 17

years to maturity.  

a. Calculate the yield to maturity ​(YTM​)on this bond.

b. Explain the relationship that exists between the couponinterest rate and yield to maturity and the par value and marketvalue of a bond.

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