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The 7​-year ​$1000 par bonds of Vail Inc. pay 8 percent interest. The​ market's required yield...

The 7​-year ​$1000 par bonds of Vail Inc. pay 8 percent interest. The​ market's required yield to maturity on a​ comparable-risk bond is 10 percent. The current market price for the bond is $ 950.

a.  Determine the yield to maturity. (round to 2 decimal points)

b.  What is the value of the bonds to you given the yield to maturity on a​ comparable-risk bond? (round to the nearest cent)

c.  Should you purchase the bond at the current market​ price?

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jeff jeffy answered 1 year ago
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