The Saleemi Corporation's

$1 comma 000

bonds pay

6

percent interest annually and have

12

years until maturity. You can purchase the bond for

$1 comma 115

.

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

3

percent?

Question content area bottom

Part 1

a.The yield to maturity on the Saleemi bonds is

%.

(Round to two decimal places.)