Determine the yield to maturity

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(Bond valuation)

The 15?-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 12 percent.  The current market price for the bond is $1,080. (Round to two decimal places or nearest cent)

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?

Reference no: EM131790438

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