The Saleemi Corporation's $1 000 bonds pay 5 percent interest annually and have 9 years until...

Question

Question

The Saleemi Corporation's $1 000 bonds pay 5 percent interest annually and have 9 years until...

The Saleemi Corporation's $1 000 bonds pay 5 percent interest annually and have 9 years until maturity. You can purchase the bond for $885.

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.)

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

5.00% COUPON RATE NPER YEARS TO MATURITY $50.00 (face value x coupon rate) PMT= $1,000.00 FACE VALUE PRICE PV $885.00 6.75% r Should purchase the bond at 5% comparable risk, because at 5% bond should be traded at par but trading at discount

Add a comment

Answer 2

Similar Homework Help Questions

?(Yield to? maturity)?The Saleemi? Corporation's ?$1 ,000 bonds pay 11 percent interest annually and have 15...

?(Yield to? maturity)?The Saleemi? Corporation's ?$1 ,000 bonds pay 11 percent interest annually and have 15 years until maturity. You can purchase the bond for ?$935. 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 13 ?percent? a. The yield to maturity on the Saleemi bonds is ____?%. ? (Round to two decimal? places.) b. You should/should not purchase the bonds because your...
?(Related to Checkpoint? 9.2)???(Yield to? maturity)??The Saleemi? Corporation's ?$1000 bonds pay 9 percent interest annually and...

?(Related to Checkpoint? 9.2)???(Yield to? maturity)??The Saleemi? Corporation's ?$1000 bonds pay 9 percent interest annually and have 8 years until maturity. You can purchase the bond for ?$1065. a.What is the yield to maturity on this? bond? Answer in percentage b.Should you purchase the bond if the yield to maturity on a? comparable-risk bond is 6 ?percent?
(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.)

(Yield to maturity)The Saleemi Corporation's $1,000 bonds pay 7 percent interest annually and have 12 years...

(Yield to maturity)The Saleemi Corporation's $1,000 bonds pay 7 percent interest annually and have 12 years until maturity. You can purchase the bond for $1,085. a. What is the yield to maturity on this bond? (Round to two decimal places.) b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 7 percent?
(Yield to maturity) The Saleemi Corporation's $1000 bonds pay 8 percent interest annually and have 8...

(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?
(Yield to maturity) Abner Corporation's bonds mature in 24 years and pay 14 percent interest annually....

(Yield to maturity) Abner Corporation's bonds mature in 24 years and pay 14 percent interest annually. If you purchase the bonds for $1 comma 275, what is your yield to maturity? Your yield to maturity on the Abner bonds is nothing%. (Round to two decimal places.)

1. What is the yield to maturity on this bond? 2. Should you purchase the bond...

1. What is the yield to maturity on this bond? 2. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 12 percent? (Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 12 percent interest annually and have 14 years until maturity. You can purchase the bond for S895. a. What is the yleld to maturity con this bond? b. Should you purchase the bond if the yield to maturity on...
(Bond valuation) The 14-year $1,000 par bonds of Vail Inc. pay 9 percent interest. The market's...

(Bond valuation) The 14-year $1,000 par bonds of Vail Inc. pay 9 percent interest. The market's required yield to maturity on a comparable-risk bond is 7 percent. The current market price for the bond is $1,060. a. Determine the yield to maturity. b. What is the value of the bonds to you given the yield to maturity on a comparable-risk bond? c. Should you purchase the bond at the current market price? a. What is your yield to maturity on...
The 15-year, $1000 par value bonds of Waco Industries pay 6 percent interest annually. The market...

The 15-year, $1000 par value bonds of Waco Industries pay 6 percent interest annually. The market price of the bond is $1095, and the market's required yield to maturity on a comparable-risk bond is 4 percent. a. Compute the bond's yield to maturity. (round to 2 decimal points) b. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond. (round to the nearest cent) c. Should you purchase the bond?

The 12-year, $1,000 par value bonds of Waco Industries pay 9 percent interest annually. The market price of the bond is...

The 12-year, $1,000 par value bonds of Waco Industries pay 9 percent interest annually. The market price of the bond is $1,055, and the market's required yield to maturity on a comparable-risk bond is 7 percent. a. What is your yield to maturity on the Waco bonds given the current market price of the bond____%? b. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond_____? c. Should you purchase the...

The Saleemi Corporation's $1 000 bonds pay 5 percent interest annually and have 9 years until...

Homework Answers

Add Answer to:
The Saleemi Corporation's $1 000 bonds pay 5 percent interest annually and have 9 years until...

Post as a guest

Earn Coins

?(Yield to? maturity)?The Saleemi? Corporation's ?$1 ,000 bonds pay 11 percent interest annually and have 15...

?(Related to Checkpoint? 9.2)???(Yield to? maturity)??The Saleemi? Corporation's ?$1000 bonds pay 9 percent interest annually and...

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

(Yield to maturity)The Saleemi Corporation's $1,000 bonds pay 7 percent interest annually and have 12 years...

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

(Yield to maturity) Abner Corporation's bonds mature in 24 years and pay 14 percent interest annually....

1. What is the yield to maturity on this bond? 2. Should you purchase the bond...

(Bond valuation) The 14-year $1,000 par bonds of Vail Inc. pay 9 percent interest. The market's...

The 15-year, $1000 par value bonds of Waco Industries pay 6 percent interest annually. The market...

The 12-year, $1,000 par value bonds of Waco Industries pay 9 percent interest annually. The market price of the bond is...

The Saleemi​ Corporation's ​$1 000 bonds pay 5 percent interest annually and have 9 years until...

Homework Answers