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# 9 ( Bond valuation ) The 8 - year $ 1 comma 0 0 0 par bonds of Vail Inc. pay 1 3 percent

#9(Bond valuation)The 8-year $1 comma 000 par bonds of Vail Inc. pay 13 percent interest. The market's required yield to maturity on a comparable-risk bond is 14 percent. The current market price for the bond is $ 910.
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?

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