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9) The 1 5 -year $ 1 ,000 par bonds of Vail Inc. pay 12 percent interest. Themarket's required yield to maturity on acomparable-risk bond

9) The 15-year $1,000 par bonds of Vail Inc. pay 12 percent interest. Themarket's required yield to maturity on acomparable-risk bond is 14 percent. The current market price for the bond is $ 950.

a.Determine the yield to maturity.

b.What is the value of the bonds to you given the yield to maturity on acomparable-risk bond?

c.Should you purchase the bond at the current marketprice?

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