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(Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 7 percent interest annually and have 14 years until maturity. You can purchase the bond for

(Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 7 percent interest annually and have 14 years until maturity. You can purchase the bond for $895.

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 7 percent?

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