​(Bond valuation) The 10 ​-year ​$1 comma 000 par bonds of Vail Inc. pay 12 percent interest. The​ market's required y

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 ​(Bond valuation)  The
10
​-year
​$1 comma 000
par bonds of Vail Inc. pay
12
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
$ 850
.
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?
Question content area bottom
Part 1
a. What is your yield to maturity on the Vail bonds given the
current market price of the​ bonds?
​%
​ (Round to two decimal​ places.)