Question: ( Bond Valuation ) The 1 2 - year, $ 1 , 0 0 0 par value bonds of Waco Industries pay 6 percent interest

(Bond Valuation) The 12-year, $1,000 par value bonds of Waco Industries pay 6 percent interest annually. The market proce of the bond is $945, and the market's required yield to maturity on a comparable-risk bond is 8 percent.
A) Compute the bond's yield to maturity.
B) Determine the value of the bond to you given the market's required yoeld to maturity on a comparable-risk bond.
C) Should you purchase this bond?

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