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​(Related to Checkpoint​ 9.2)  ​(Yield to​ maturity)  The Saleemi​ Corporation's ​$1 comma 000 bonds pay 5...

​(Related to Checkpoint​ 9.2)  ​(Yield to​ maturity)  The Saleemi​ Corporation's ​$1 comma 000 bonds pay 5 percent interest annually and have 11 years until maturity. You can purchase the bond for ​$1 comma 145. 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 5 ​percent? a.  The yield to maturity on the Saleemi bonds is nothing​%. ​ (Round to two decimal​ places.)

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Answer #1

a) Yield to maturity of the bond:-

=RATE(nper,pmt,pv,fv)

=RATE(11,5%*1000,-1145,1000)

=3.40%

b) No

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