The 17-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 10%

percent.

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

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?