(Bond valuationrelationships) The 14-year, $1,000 par value bonds of Waco Industries pay 6 percent interest annually. The market price of the bond is $875, and themarket's required yield to maturity on acomparable-risk bond is 9 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?

Round to Two Decimal Places