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The Saleemi Corporation's $1000 bonds pay 8 percent interest annually and have 14 years until maturity. You can purchase the bond for $1095. a.What is
The Saleemi Corporation's $1000 bonds pay 8 percent interest annually and have 14 years until maturity. You can purchase the bond for $1095. 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?
A) ______ ?
For B choose one of the bolded options(for each bolded section) based on the answer you calculate from A:
B) You should/should not purchase the bond because the yield to maturity is less/greater than the comparable risk bond
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