Question
(Yield tomaturity) The SaleemiCorporation's $1,000 bonds pay 11 percent interest annually and have 15 years until maturity. You can purchase the bond for $875. a.
(Yield tomaturity)The SaleemiCorporation's $1,000 bonds pay 11 percent interest annually and have 15 years until maturity. You can purchase the bond for $875.
a.What is the yield to maturity on thisbond?(Round to two decimalplaces.)
b.Should you purchase the bond if the yield to maturity on acomparable-risk bond is 11 percent?
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Financial Management Theory And Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
3rd Canadian Edition
017658305X, 978-0176583057
