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(Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 11 percent interest annually and have 12 years until maturity. You can

(Related to Checkpoint 9.2) (Yield to maturity)

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

$955.

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 10 percent? (lesser or greater)

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