(arae a Cnepom d.2 aliu utiecnpo a.3 DUnu vaiuauvn eiaivnSipsj The 14-year, $1,000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is $1,155, and the market's required yield to maturity on a comparable-risk bond is 5 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond. c. Should you purchase the bond? (Bond valuation relationships) Arizona Public Utilities issued a bond that pays $60 in interest, with a $1,000 par value. It matures in 30 years. The market's required yield to maturity on a comparable-risk bond is 7 percent a. Calculate the value of the bond. b. How does the value change if the market's required yield to maturity on a comparable-risk bond (i) increases to 10 percent or (i) decreases to 6 percent? c. Explain the implications of your answers in part b as they relate to interest-rate risk, premium bonds, and discount bonds d. Assume that the bond matures in 15 years instead of 30 years. Recompute your answers in parts a and b. e. Explain the implications of your answers in part d as they relate to interest-rate risk, premium bonds, and discount bonds