Question: Bond valuation ) The 7 7 - year $ 1 comma 0 0 0 1 , 0 0 0 par bonds of Vail Inc. pay

Bond valuation) The
77-year
$1 comma 0001,000
par bonds of Vail Inc. pay
88
percent interest. The market's required yield to maturity on a comparable-risk bond is
1111
percent. The current market price for the bond is
$ 910$910.
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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