Yield to maturity)Fitzgerald's

30-year

bonds pay

7

percent interest annually on a

$1,000

par value. If the bonds sell at

$835,

what is the bond's yield to maturity? What would be the yield to maturity if the bonds paid interest semiannually? Explain the difference.

Question content area bottom

Part 1

a. The bond's yield to maturity if the bond pays interest annually is

enter your response here%.

(Round to three decimal places.)

(Related to Checkpoint 9.2)(Yield to maturity)The Saleemi Corporation's

$1,000

bonds pay

11

percent interest annually and have

12

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

11

percent?

Question content area bottom

Part 1

a.The yield to maturity on the Saleemi bonds is

enter your response here%.

(Round to two decimal places.)