The 14-year $1,000 par bonds of Vail Inc. pay 9 percent interest. The market's required yield to maturity on a comparable-risk bond is 10 percent. The current market price for the bond is $1,050.

a.Determine the yield to maturity. (Round to two decimal places.)

b.What is the value of the bonds to you given the yield to maturity on a comparable-risk bond? (Round to two decimal places.)

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