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What is the yield to maturity on bond

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Reference no: EM132807145

A corporation's $1000 bonds pay 5 percent interest annually and have 12 years until maturity. You can purchase the bond for $1145.

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 2 percent?

Reference no: EM132807145

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