(Bond valuation) The 12-year $1,000 par bonds of Vail Inc. pay 14 percent interest. The market's required yield to maturity on a comparable-risk bond is 11 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?

Should you purchase the bond at the current market price?

What is your yield to maturity on the Vail bonds given the current market price of the bonds?

% (Round to two decimal places.)

(lated to Checkpoint 2nd Checkoon 8. Bond Valuation relationship) The 17.yout $1,000 per value bords of Waco Industries pay percent interest only. The market price of the band is $946, and the man's gun yed to mainly on a comparable-cik bond is 11 percent Compute the bood's yold to matury Determine the value of the bond to you given the market required yield to maturity on on a companiekbond c. Should you purchase the bond? What is your id maturity on the Waco bonds given the current market in the bone Choond to two choim pisc.)