1 answer

 ​(Yield to​ maturity)  The Saleemi​ Corporation's ​$1000 bonds pay 8 percent interest annually and have 8...

Question:

 ​(Yield to​ maturity)  The Saleemi​ Corporation's ​$1000 bonds pay 8 percent interest annually and have 8 years until maturity. You can purchase the bond for ​$855.

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 9 ​percent?


Answers

1,000 8% $ A Face value (FV) B Coupon rate C|Number of compounding periods per year AxB:C Interest per period (PMT) Bond pric

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