Question: ( Bond valuation ) The 7 - year $ 1 , 0 0 0 par bonds of Vail Inc. pa 9 percent interest. The markets

(Bond valuation) The 7-year $1,000 par bonds of Vail Inc. pa 9 percent interest. The markets required yield to maturity on a comparable-risk bond is 12 percent. The current market price for the bond is $930.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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