The Saleemi​ Corporation's ​$1,000 bonds pay 8 percent interest annually and have 12 years until maturity. You can purch

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answerhappygod
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The Saleemi​ Corporation's ​$1,000 bonds pay 8 percent interest annually and have 12 years until maturity. You can purch

Post by answerhappygod »

The Saleemi​ Corporation's ​$1,000 bonds pay 8 percent
interest annually and have 12 years until maturity. You can
purchase the bond for ​$1,095.
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 5 ​percent?
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