Question: Bond valuation relationships ) The 1 2 - year, $ 1 comma 0 0 0 par value bonds of Waco Industries pay 1 2 percent

Bond valuation relationships) The 12-year, $1 comma 000 par value bonds of Waco Industries pay 12 percent interest annually. The market price of the bond is $915, and the market's required yield to maturity on a comparable-risk bond is 15 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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