The saleemi corporation’s is $1,000 bonds pay 9 percent interest rate annually and have 9 years until maturity. You can purchase the bond for $935. 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 ? A. The yield to maturity on the saleemi bonds is Round to two decimal places

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A: Calculation of Value of Bond: Excel Spreadsheet: Excel Workings:

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A:

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A:

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A: YTM refers to the yield to maturity of a bond.

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A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.

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A: The given problem can be solved using RATE function in excel. RATE function computes yield to…

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