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​(Related to Checkpoint 9.2 and Checkpoint​ 9.3)  ​(Bond valuation)  The 11​-year ​$1,000 par bonds of Vail...

​(Related to Checkpoint 9.2 and Checkpoint​ 9.3)  ​(Bond valuation)  The 11​-year ​$1,000 par bonds of Vail Inc. pay 15 percent interest. The​ market's required yield to maturity on a​ comparable-risk bond is 16 percent. 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?

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

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