The 9 year $ 1 , 0 0 0 par bonds of Vail Inc pay 1 3 percent interest The market's required yield to maturity on a comparable risk bond is 1 7 percent The current market price for the bond is $ 8 8 0 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

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The 9 - year $ 1 , 0 0 0 par bonds of Vail Inc. pay 1 3 percent interest. The market's required yield to

The

9 -

year $

1, 000

par bonds of Vail Inc. pay

13

percent interest. The market's required yield to maturity on a comparable

-

risk bond is

17

percent. The current market price for the bond is $

880 .

.

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?

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