The yield to maturity on comparable-risk bond

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(Bond valuation). The 7-year $1000 par bonds of Vail Inc. pay 8% interest. The market's required yield to maturity on a comparable-risk bond is 12%. The current market price for the bond is $880.

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?

--------------------------

a. What is your yield to maturity on the Veil bonds given the current market price of the bonds?

______%

b. What should be the value of the Vail bonds given to yield to maturity on a comparable-risk bond?

$_______

Reference no: EM131868192

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