The 13-year $1,000 par bonds of Vail Inc. pay 12 percent interest. The market's required yield to maturity on a comparable-risk bond is 9 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?

c) Should you purchase the bond at the current market price?