Question: (Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation relationships) The 11-year, $1,000 par value bonds of Waco Industries pay 6 percent interest annually. The

$11-year, \$1,000 par value bonds of Waco Industries pay 6 percent interest$

(Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation relationships) The 11-year, \$1,000 par value bonds of Waco Industries pay 6 percent interest annually. The market price 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 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.) (Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 5 percent interest annually and have 11 years until maturity. You can purchase the bond for $1,135. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 2 percent? a. The yield to maturity on the Saleemi bonds is \%. (Round to two decimal places.)

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