The Saleemi Corporation's $3,000 bonds pay 5 percent interest annually and have 13 years until maturity. You can purchase the bond for $800. 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 7 percent?

Answer rating: 100% (QA)

To calculate the yield to maturity YTM on the bond we can use the following formula YTM C fra... View the full answer