Question: The 1 0 - year $ 1 , 0 0 0 par bonds of Vail Inc. pay 8 percent interest. The market's required yield to

The 10-year $1,000 par bonds of Vail Inc. pay 8 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 $950. 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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