Determine the yield to maturity

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The 10 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 19 percent. The current market price for the bond is $900. (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 of the bonds?

Reference no: EM131456359

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