The 18-year, $1,000 par value bonds of Waco Industries pay 11 percent interest annually. The market price of the bond is $1,065, and the market's required yield to maturity on a comparable-risk bond is 12 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?

a.What is your yield to maturity on the Waco bonds given the current market price of the bonds? ____ % (Round to two decimal places.) b.What should be the value of the Waco bonds given the market's required yield to maturity on a comparable-risk bond? $______(round to the nearest cent.) c.You (should) or (should not) purchase the Waco bonds at the current market price because they are currently (underpriced) or (overpriced)