The 9

9-year $1 comma 000

1,000 par bonds of Vail Inc. pay 12

12 percent interest. Themarket's required yield to maturity on acomparable-risk bond is 14

14 percent. The current market price for the bond is $ 850

$850.

a.Determine the yield to maturity.

b.What is the value of the bonds to you given the yield to maturity on acomparable-risk bond?

c.Should you purchase the bond at the current marketprice?

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