9. The Saleemi Corporation's $1,000 bonds pay 12 percent interest annually and have 11 years until maturity. You can purchase the bond for $1,155.

a.What is the yield to maturity on this bond?

b.Should you purchase the bond if the yield to maturity on a comparable-risk bond is 11 percent?

8. Fingen's 11-year, $1,000 par value bonds pay 12 percent interest annually. The market price of the bonds is $860 and the market's required yield to maturity on acomparable-risk bond is 13 percent.

a.Compute the bond's yield to maturity.

b.Determine the value of the bond to you, given your required rate of return.

c.Should you purchase the bond?