Question
1.The Saleemi corporation's $1000 bonds pay 8 percent interest annually and have 14 years until maturity. You can purchase the bond for $ 1095 what
1.The Saleemi corporation's $1000 bonds pay 8 percent interest annually and have 14 years until maturity. You can purchase the bond for $ 1095
what is the yield to maturity on this bond?
Should you purchase the bond if the yield to maturity on a comparable risk bond is 8 percent?8.
2.What would you expect the nominal rate of interest to be if the real rate is 4.3 percent and the expected inflation rate is 7.1 percent?
3.The 11 years , $1000 par value bonds of Waco Industries pay 11 percent interest annually. The market price of thebond is $ 1065 and the market's required yield to maturity on a comparable risk bond is 9 percent ?
compute the bonds's yield to maturity
determine the value of the bond to you given the market's required yield to maturity on a comparable risk bond
should you purchase the bond ? why ?
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