(Bond valuation relationships) The 16-year $1,000 par value bonds of Waco Industries pay 11% interest annually. The market price of the bond is $1,095, and the market's required yield to maturity on a comparable-risk bond is 8%

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?

a. What is your yield to maturity on the Waco bonds given the current market price of the bonds? 9.80% (Round to two decimal places.)

b. What should be the value of the Waco bonds given the market's required yield to maturity on a comparable-risk bond? $( ) (Round to the nearest cent.)

c. Should you purchase the bond?