Based on your answers above what is the relationship


A company has 6 percent coupon (compounded semiannually) bonds on the market with 15 years to maturity, and the par value of $1,000. At what price should the bonds be selling for if YTM is 7%? Had the bond been selling at $1,089.50, what would be the YTM (assuming the same coupon, maturity and par value)? Based on your answers above, what is the relationship between YTM and bond price?

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Finance Basics: Based on your answers above what is the relationship
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