The 8?-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 14 percent. The current market price for the bond is $ 1,110.
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?