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(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

(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.What is your yield to maturity on the Waco bonds given the current market price of the bonds?

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