Reference no: EM133056598
1. The 9?-year ?$1,000 par bonds of Vail Inc. pay 11 percent interest. The? market's required yield to maturity on a? comparable-risk bond is 8 percent. The current market price for the bond is $1,110.
Determine the yield to maturity. ___%
What is the value of the bonds to you given the yield to maturity on a? comparable-risk bond?Should you purchase the bond at the current market? price?
2. The Saleemi? Corporation's ?$1,000 bonds pay 7 percent interest annually and have 9 years until maturity. You can purchase the bond for ?$1,145.
a. What is the yield to maturity on this? bond? _____%
b. Should you purchase the bond if the yield to maturity on a? comparable-risk bond is 6 percent?
3. The 11?-year, $1,000 par value bonds of Waco Industries pay 6 percent interest annually. The market price of the bond is ?$1,085?, and the? market's required yield to maturity on a? comparable-risk bond is 3 percent.
a. Compute the? bond's yield to maturity.
b. Determine the value of the bond to you given the? market's required yield to maturity on a? comparable-risk bond.
c. Should you purchase the? bond?
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Determine the amount of depletion expense for current year
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Determine the yield to maturity
: 1. The 9?-year ?$1,000 par bonds of Vail Inc. pay 11 percent interest. The? market's required yield to maturity on a? comparable-risk bond is 8 percent.
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