(Bond valuation relationships) The 18 -year, $1000 par value bonds of Waco Industries pay 9 percent interest annually. The market price of the bond is $1145, and the market's required yield to maturity on a comparable-risk bond is 6 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?