(Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation)The 12-year $1,000 par bonds of Vail Inc. pay 13 percent interest. The market's required yield to maturity on a comparable-risk bond is16 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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Part 1

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

[ ]% (Round to two decimal places.)