7) (Yield to maturity) The market price is $1,075 for a 9-year bond ($1,000 par value) that pays 11 percent annual interest, but makes interest payments on a semiannual basis (5.5 percent semiannually). What is the bond's yield to maturity?

8) (Yield to maturity) Abner Corporation's bonds mature in 17 years and pay 11 percent interest annually. If you purchase the bonds for $1,275, what is your yield to maturity?

Your yield to maturity on the Abner bonds is %. (Round to two decimal places.) ________

9) (Bond valuation) The 7-year $1,000 par bonds of Vail Inc. pay 15 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 $1,120.

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 Vail bonds given the current market price of the bonds?

% (Round to two decimal places.) _______________________