What is the yield to maturity on this bond

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Reference no: EM132847656

Problem - The Saleemi Corporation's $1,000 bonds pay 5 percent interest annually and have 11 years until maturity. You can purchase the bond for $875.

Required -

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?

Reference no: EM132847656

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