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Maturity on a? comparable-risk bond

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Reference no: EM133115345

The 12?-year ?$1,000 par bonds of Vail Inc. pay 13 percent interest. The ?market's required yield to maturity on a? comparable-risk bond is 15 percent. The current market price for the bond is $950.

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: EM133115345

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