Question

The Saleemi​ Corporation's ​$1,000 bonds pay 6 percent interest annually and have 11 years until maturity....

The Saleemi​ Corporation's ​$1,000 bonds pay 6 percent interest annually and have 11 years until maturity. You can purchase the bond for ​$1,075

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 4 ​percent?

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Answer #1

a)

b)

Yes, Bond should be purchased.

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