The 18-year, $1,000 par value bonds of Waco Industries pay 7 percent interest annually. The market price of the bond is $875, and themarket's required yield to maturity on acomparable-risk bond is 10 percent.

a.Compute thebond's yield to maturity.

b.Determine the value of the bond to you given themarket's required yield to maturity on acomparable-risk bond.

c.Should you purchase thebond?

Round 2 decimal points