$($Related to Checkpoint$9\mathrm{.}2)($Yield to$$ maturity$)$ The Saleemi$$ Corporation's

$$$$1$ comma $0001,000$

bonds pay

$66$

percent interest annually and have

$1111$

years until maturity. You can purchase the bond for

$$$$855855.$

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

$77$

$$percent$?$

Question content area bottom

Part $1$

a$.$ The yield to maturity on the Saleemi bonds is

enter your response here$\%.$

$($Round to two decimal$$ places.$)$

$99-$year

$$$$1$ comma $0001,000$

par bonds of Vail Inc. pay

$1212$

percent interest. The$$ market's required yield to maturity on a$$ comparable$-$risk bond is

$1111$

percent. The current market price for the bond is

$ $1$ comma $130$$$1,130.$

a$.$ Determine the yield to maturity.

b$.$ What is the value of the bonds to you given the yield to maturity on a$$ comparable$-$risk bond?

c$.$ Should you purchase the bond at the current market$$ price?

Question content area bottom

Part $1$

a$.$ What is your yield to maturity on the Vail bonds given the current market price of the$$ bonds?

enter your response here$\%$

$($Round to two decimal$$ places.$)$