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( Related to Checkpoint 9 . 2 and Checkpoint 9 . 3 ) ( Bond valuation ) The 1 3 - year $ 1 ,
Related to Checkpoint and Checkpoint Bond valuation The year $ par bonds of
Vail Inc. pay percent interest. The market's required yield to maturity on a comparablerisk bond is
percent. The current market price for the bond is $
a Determine the yield to maturity.
b What is the value of the bonds to you given the yield to maturity on a comparablerisk 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.
b What should be the value of the Vail bonds given the yield to maturity on a comparable risk bond?
$ Round to the nearest cent.
c You
purchase the Vail bonds at the current market price because they are currently
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