The 15- 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 10 percent. The current market price for the bond is $1,080.
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 of the bonds?