(Yield to maturity) The saleemi corporations 1000 bonds pay 7 percent interest annually and have 15 years until maturity. You can purchase the bond for $1,145.

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 ?

(Bond evaluation) Fingens 19 year , $1,000 par value bonds pay 14 percent interest annually. The market price of the bonds is $1,110 and the markets required yield to maturity on a comparable-risk bond is 11 percent.

A. Compute the bonds yield to maturity.

B. Determine the value of the bond to you, given your required rate of return.

C. Should you purchase the bond?