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Posted on May 19, 2024

The 9 year 1 , 0 0 0 par bonds of Vail Inc.pay 1 5 percent interest. The market s required yield to maturity on

The

9

year

1, 000

par bonds of Vail Inc.pay

15

percent interest. The market

s required yield to maturity on a comparable risk bond is

16

percent. The current market price fot the bond is

900 .

What is the yiels to maturity?

What is the value of the bonds to you given the yield to maturity on a comparable risk bind?

Should you purchase the bond at the current market price?

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