(Yield to maturity)The Saleemi Corporation's $1,000 bonds pay 7 percent interest annually and have 8 years until maturity. You can purchase the bond for $905.

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?

Part 1

a. The yield to maturity on the Saleemi bonds is (Round to two decimal places.)

Part 2

b.You should ??? the bonds because your yield to maturity on the Saleemi bonds is ??? than the one on a comparable risk bond.