Question: Help! Please assist with problem below with breakdown. The 12-year, $1,000 par value bonds of Waco Industries pay 8 percent interest annually. The market price

Help! Please assist with problem below with breakdown.

The 12-year, $1,000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is $1,135, and themarket's required yield to maturity on acomparable-risk bond is 5 percent. The answer is not 6.44%

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?

a.What is your yield to maturity on the Waco bonds given the current market price of thebonds? ____ (Round to two decimalplaces.)

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