What is yield to maturity on bond for bala-bala corporation

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Bala-Bala Corporation's $1,000 bond pay 5 percent interest annually and have 12 years until maturity. You can purchase the bonds for $915.

Question a. What is the yield to maturity on this bond?

Question b. Should you purchase the bond if the yield to maturity on a comparable risk bond is 9 percent?

Reference no: EM132519377

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