(Bond valuation relationships) The 19-year, $ 1000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is $885, and the market's required yield to maturity on a comparable-risk bond is11 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?