(Bond valuation relationships). The 19-year, $1000 par value bond of Waco industries pay 6% interest annually. The market price of the bond is $1145, and the market's required yield to maturity on a comparable-risk bond is 3%.

a. Compute the bonds yield to maturity.

b. Determine the value of the bond to you give in the markets required yield to maturity on a comparable-risk bond.

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

________%

b. What should be the value of the Wego bonds given the market's required yield to maturity on a comparable risk bond?

$_______.