The Saleemi​ Corporation's ​$1,000bonds pay 5 percent interest annually and have 13 years until maturity. You can purchase the bond for ​$1,075.   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 3 ​percent

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
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Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
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The Saleemi​ Corporation's ​$1,000bonds pay 5 percent interest annually and have 13 years until maturity. You can purchase the bond for ​$1,075.
 
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 3 ​percent?
 
  The yield to maturity on the Saleemi bonds is ______​%. ​ (Round to two decimal​ places.
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