Question
(Yield to maturity)The Saleemi Corporation's $1000 bonds pay 8 percent interest annually and have 8 years until maturity. You can purchase the bond for $855.
(Yield to maturity)The Saleemi Corporation's $1000 bonds pay 8 percent interest annually and have 8 years until maturity. You can purchase the bond for $855.
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 9 percent?
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Fundamentals Of Corporate Finance
Authors: Richard A. Brealey, Marcus, Alan J, Myers, Stewart C.
2nd Edition
0070074860, 9780070074866
