(Related to Checkpoint 9.2 and Checkpoint 9.3)(Bond valuation)The

1010-year

$1 comma 0001,000

par bonds of Vail Inc. pay

1212

percent interest. The market's required yield to maturity on a comparable-risk bond is

1616

percent. The current market price for the bond is

$ 880$880.

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.)