Related to Checkpoint​ 9.2)  ​(Yield to​ maturity)  The Saleemi​ Corporation's ​$1,000 bonds pay 7 percent interest annually and have 13 years until maturity. You can purchase the bond for ​$1,105.   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? a.  The yield to maturity on the Saleemi bonds is nothing​%. ​ (Round to two decimal​ places.)

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A:

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A: Hi student Since there are multiple questions, we will answer only first questions.

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.