(Bond valuation relationships) The 17-year, $1,000 par value bonds of Waco Industries pay 11 percent interest annually. The market price of the bond is $1,135, and the market's required yield to maturity on a comparable-risk bond is 8 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?