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The 11-year $1000 par bonds of Vail Inc. pay 8 percent interest. The market's required yield to maturity on a comparable-risk bond is 9 percent.

The 11-year $1000 par bonds of Vail Inc. pay 8 percent interest. The market's required yield to maturity on a comparable-risk bond is 9 percent. The current market price for the bond is $850. How would you determine the yield to maturity? What is the value of the bonds to you given the yield to maturity on a comparable-risk bond? Should you purchase the bond at the current market price?

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