You given the yield to maturity on comparable-risk bond

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Reference no: EM132031939

The 15-year $1000 par bonds of Vail Inc. pay 14 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 $ 870.

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: EM132031939

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