7.(Bond valuation)Fingen's 11-year, $1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is $950 and themarket's required yield to maturity on acomparable-risk bond is 13 percent.

a.Compute thebond's yield to maturity. (%, Round to two decimal places)

b.Determine the value of the bond toyou, given your required rate of return. ($, Round to two decimal places, EX 102.25)

c.Should you purchase thebond?