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What is the yield to maturity on this bond

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Reference no: EM133028116

Question - The Saleemi Corporation's $1,000 bonds pay 7 percent interest annually and have 13 years until maturity. You can purchase the bond for $1,125.

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?

Reference no: EM133028116

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