Question
The Saleemi Corporation's $1000 bonds pay 12 percent interest annually and have 12 years until maturity. You can purchase the bond for $855. a.What is
The Saleemi Corporation's $1000 bonds pay 12 percent interest annually and have 12 years until maturity. You can purchase the bond for $855.
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 16 percent?
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