6. Related to Checkpoint 9.2)(Yield to maturity)The Saleemi Corporation's $1,000 bonds pay 11 percent interest annually and have 14 years until maturity. You can purchase the bond for $1,095. a.What is the yield to maturity on thisbond? b.Should you purchase the bond if the yield to maturity on a comparable-risk bond is 11 percent? a.The yield to maturity on the Saleemi bonds is ____nothing%. (Round to two decimal places.)

7. (Related to Checkpoint 9.2 and Checkpoint9.3)(Bond valuation relationships)The 18-year, $1,000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is $955, and themarket's required yield to maturity on a comparable-risk bond is 10 percent. a.Compute the bond's yield to maturity. b.Determine the value of the bond to you given the market's required yield to maturity on acomparable-risk bond. c.Should you purchase the bond? a.What is your yield to maturity on the Waco bonds given the current market price of the bonds? ____nothing% (Round to two decimal places.)

9. (Related to Checkpoint 9.6)(Inflationand interestrates)

What would you expect the nominal rate of interest to be if the real rate is 4.3 percent and the expected inflation rate is7.2 percent?

The nominal rate of interest would be nothing ___%.(Round to two decimal places.)