(Related to Checkpoint 9.2)(Yield to maturity)The Saleemi Corporation's

$1,000

bonds pay

5

percent interest annually and have

14

years until maturity. You can purchase the bond for

$895.

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

5

percent?

Question content area bottom

Part 1

a.The yield to maturity on the Saleemi bonds is

enter your response here%.

(Round to two decimal places.)