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The 15-year, $1000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is $1 comma 115, and

The 15-year, $1000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is $1 comma 115, and the market's required yield to maturity on a comparable-risk bond is 5 percent.

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?

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