How are bond prices related to interest rates? What are the main types of risk for bonds?
What is the formula for the Yield to Maturity of a bond? A corporation’s bonds currently sell for $1,115 and have 17 years to maturity. The annual coupon rate is 9.25 percent, and the par value of the bonds is $1,000. Interest is paid annually. The bonds’ yield to maturity is equal to ___?