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The 1 9 - year, $ 1 0 0 0 par value bonds of Waco Industries pay 9 percent interest annually. The market price of

The 19-year, $1000 par value bonds of Waco Industries pay 9 percent interest annually. The market price of the bond is $1075, and the market's required yield to maturity on a comparable-risk bond is 10 percent. Compute the bond's yield to maturity. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond. Should you purchase the bond?

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