(Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation relationships) The 12-year, $1,000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is $925, and the market's required yield to maturity on a comparable-risk bond is 11 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?

(Related to Checkpoint 9.2 and Chieckpoint 9.3) (Bond valuation relationships) The 12 -year, 51,000 par value bonds of Wace industries poy 8 percent interest annually. The markot price of the bond is $925, and the mankefs recuired yeld to makuity on an comparatio-risk bend is 11 percent. a. Compute the bend's yield to maturity. b. Determine the value of the bond to you given the market's roquired yield to maturity on a comparable-risk bond. c. Should you purchase the bond? 2. What is your yleld to maturty on the Waco bonds oven the current macket price of the bonds? (Round to two decimal places.)