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The Saleemi Corporatiion's $1,000 bonds pay 7% interest annually and have 15 years until maturity. You can pruchase the bond for $885.What is the yield to maturity (YTM) on this bond?Should you purcha
The Saleemi Corporation's $1,000 bonds pay 7% interest annually and have 15 years until maturity. You can purchase the bond for $885.
- What is the yield to maturity (YTM) on this bond?
- Should you purchace the bond if the YTM on a comparable-risk bond is 7%?
The information above is organized as follows:Face Value = $1,000Coupon rate = 7% annuallyn = 15 yearsPrice = $885
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