(Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation relationships) The 19-year, $1,000 par value bonds of Waco Industries pay 12 percent interest annually. The market price of the bond is $935, and the market's required yield to maturity on a comparable-risk bond is 14 percent.

1. Compute the bond's yield to maturity.
2. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond.
3. Should you purchase the bond?

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

\$935, and the marketh required yeld to maturity on a compuratie-risk bond is 14 percent. a. Compute the bond's yeld to maturity. b. Defermine the value of the bond to you given the markers required yeld to maturity on a comparselo-risk bond c. Should you purchase the bond? - What is your yeid to maturty on the Whos bonds given the current market price of the bonds? (Round to the decimal piachs)