Mcdonald's 16 year, $1000 par value bonds pay 13% interest annually. The market price of the bonds is $1,100 and the market's required yield to maturity on a comparable-risk bond is 10%.

- What is your yield to maturity on the Mcdonald's bonds given the market price of the bonds? (Round to two decimal places)

- What should be the value of the Mcdonald's bonds given your required rate of return on a comparable bond? (Round to the nearest cent)

- (Fill in the blank) You ___ (should or should not) purchase the Mcdonald's bonds because they are currently ___ (underpriced or overpriced)