Determine the yield to maturity

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Question - The 10?-year ?$1,000 par bonds of Vail Inc. pay 8 percent interest. The? market's required yield to maturity on a? comparable-risk bond is 5 percent. The current market price for the bond is $1,100.

Required -

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: EM132786394

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