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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Yield to maturity Each of the bonds shown in the following table pays interest annually.
Bond |
Par value |
Coupon interest rate |
Years to maturity |
Current value |
A |
$1,000 |
9% |
8 |
$ 820 |
B |
1,000 |
12 |
16 |
1,000 |
C |
500 |
12 |
12 |
560 |
D |
1,000 |
15 |
10 |
1,120 |
E |
1,000 |
5 |
3 |
900 |
a. Calculate the yield to maturity (YTM) for each bond.
b. What relationship exists between the coupon interest rate and yield to maturity and the par value and market value of a bond? Explain.
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