National Steels 15-year $1,000 par value bonds pay 8 percent ($80 coupon) coupons annually. The market price of the bonds is $1,085 (sold at a premium; % needs to be lower than RRR: 10%), and your required rate of return is 10%.

a) Compute the bonds expected rate of return (YTM).

b) Determine the value of the bond to you, given your required rate of return (10%).

c) Should you purchase the bond?