The 12-year, $1,000 par value bonds of Waco Industries pay 9 percent interest annually. The market price of the bond is $1,055,

and the market's required yield to maturity on a comparable-risk bond is 7 percent.

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

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_____?