The Saleemi Corporation’s $1,000 bonds pay 7 percent interest annually and have 9 years until maturity. You can purchase the bond for $935.
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?
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a. The yield to maturity on the Saleemi bonds is __-%. (Round to two decimal places.)