(Bond valuationrelationships) The 11-year, $1,000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is $1,105, and themarket's required yield to maturity on acomparable-risk bond is 5 percent.

a.Compute thebond's yield to maturity.

b.Determine the value of the bond to you given themarket's required yield to maturity on acomparable-risk bond.

c.Should you purchase thebond?

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

6.63

6.63% (Round to two decimalplaces.)

b.What should be the value of the Waco bonds given themarket's required yield to maturity on acomparable-risk bond?

$

nothing

(Round to the nearestcent.)