Question
?(Yield to? maturity)?The Saleemi? Corporation's ?$1 ,000 bonds pay 11 percent interest annually and have 15 years until maturity. You can purchase the bond for
?(Yield to? maturity)?The Saleemi? Corporation's ?$1 ,000 bonds pay 11 percent interest annually and have 15 years until maturity. You can purchase the bond for ?$935.
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 13 ?percent?
a. The yield to maturity on the Saleemi bonds is ____?%. ? (Round to two decimal? places.)
b. You should/should not purchase the bonds because your yield to maturity on the Saleemi bonds is greater/less than the one on a comparable risk bond. ? (Select from the? drop-down menus.)
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