(Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 7 percent...
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(Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 7 percent interest annually and have 11 years until maturity. You can purchase the bond for $885. 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 10 percent? a. The yield to maturity on the Saleemi bonds is %. (Round to two decimal places.) b. You purchase the bonds because your yield to maturity on the Saleemi bonds is than the one on a comparable risk bond. (Select from the drop-down menus.)
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