(Bond valuation relationships) The 15-year, $1,000 par value bonds of Waco Industries pay

9 percent interest annually. The market price of the bond is $1,125, and the market's required yield to maturity on a comparable-risk bond is 6 percent.

a.Compute the bond's yield to maturity. (Round to two decimal places.)

b.Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond. (Round to nearest cent.)

c.Should you purchase the bond?