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(Related to Checkpoint 9.2 and Checkpoint? 9.3)???(Bond valuation)??The 9?-year ?$1000 par bonds of Vail Inc. pay 14 percent interest. The? market's required yield to maturity
(Related to Checkpoint 9.2 and Checkpoint? 9.3)???(Bond valuation)??The 9?-year ?$1000 par bonds of Vail Inc. pay 14 percent interest. The? market's required yield to maturity on a? comparable-risk bond is 12 percent. The current market price for the bond is $ 1050.
a.??Determine the yield to maturity. in percentage
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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