The 12-year, $1000 par value bonds of Waco Industries pay 7 percent interest annually. The market price of the bond is $1,55 and the market's required yield to maturity on a comparable-risk bond is 4percent.

a.Compute the bond's yield to maturity.

b.Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond. c.Should you purchase the bond?

a.What is your yield to maturity on the Waco bonds given the current market price of the bonds? nothing% (Round to two decimal places.)