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thumbs up if correct. Thank you! Related to checkpoint 2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 8 percent interest annually and have

thumbs up if correct. Thank you!
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Related to checkpoint 2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 8 percent interest annually and have 11 years until maturity. You can purchase the bond for $865. .. 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 9 percent? a. The yield to maturity on the Salvemi bordo is I (Round to two decimal places) (Relled to Checkpoint 9,5) (Bond valuation relationships) You own a bond that pays $120 in annual interest with a $1,000 par value. It matures in 10 years. The market's required yield to maturity on a comparable-risk bond is 11 percent a. Calculate the value of the bond b. How does the value change if the yield to maturity on a comparable-risk bond (1) increases to 15 percent or (1) decreases to 6 percent? c. Explain the implications of your answers in part b as they relate to interest-rate risk, premium bonds, and discount bonds d. Assume that the bond matures in 4 years instead of 10 years and recalculate your answers in parts a and b. e. Explain the implications of your answers in part d as they relate to interest-rate risk, premium bonds, and discount bonds. a. What is the value of the bond if the markets required yield to maturity on a comparable-risk bond is 11 percent? (Round to the nearest cent)

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