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The SaleemiCorporation's $ 1,000 bonds pay 7 percent interest annually and have 9 years until maturity. You can purchase the bond for $ 935 .

The SaleemiCorporation's $1,000 bonds pay 7 percent interest annually and have 9 years until maturity. You can purchase the bond for $935.

a.What is the yield to maturity on thisbond?

b.Should you purchase the bond if the yield to maturity on acomparable-risk bond is 7 percent?

a.The yield to maturity on the Saleemi bonds is __-%. (Round to two decimalplaces.)

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