The 7-year $1 comma 000 par bonds of Vail Inc. pay 9 percent interest. The market's required yield to maturity on a comparable-risk bond is 7 percent. The current market price for the bond is $ 1 comma 100. 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?
